Current trend

Shares of Cisco Systems Inc., an American manufacturer and supplier of network equipment for large holdings and telecommunications companies, have been rising as part of an upward trend for the fourth month in a row: during this time, the price reversed from the 45.31 mark (Murray level [1/8]), broke into the positive part of the Murray trading range and is currently testing a reversal level of 53.12 (the Murray level [6/8]), which has been unapproachable for quotes for more than two weeks. In case of consolidation above the level of 53.12, the upward dynamics will continue to the levels of 54.69 (Murray level [7/8]) and 56.25 (Murray level [8/8]). The key for the "bears" is the mark 51.56 (Murray level [5/8]), below the middle line of the Bollinger Bands, the breakdown of which will allow the instrument to continue moving within the central Murray channel to the area of 50.00 (Murray level [4/8]) and 48.44 (Murray level [3/8]).

Technical indicators confirm the continuation of the upward dynamics: the Bollinger Bands and the Stochastic have reversed upwards, and the MACD histogram has stabilized in the positive zone.

Support and resistance

Resistance levels: 53.12, 54.69, 56.25.

Support levels: 51.56, 50.00, 48.44.

Trading tips

Long positions can be opened above 53.12 with targets at 54.69, 56.25 and stop-loss at 52.10. Implementation period: 5–7 days.

Short positions may be opened below 51.56 with targets at 50.00, 48.44 and stop-loss at 52.70.