Cisco Systems, Inc.

(NASDAQ Global Select)
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Somewhat Bearish -35

Cisco Systems (CSCO) Price Forecast: Correction Deepens as Key Support Nears

AI-generated analysis

πŸ“‰ CSCO stock is testing key Fibonacci support near $109.72 after hitting a new retracement low of $110.22.

πŸ“Š The 50-day moving average has shifted from support to resistance following a decisive break below the level.

πŸ” Technical analysis shows a bearish shooting star pattern on the June monthly chart confirming weakening momentum.

🎯 If current support fails, the next downside targets are $103.34 (50% retracement) and the 20-week moving average.

🚩 A potential bullish flag pattern remains intact but is under pressure from recent selling activity.

πŸ“ˆ The stock previously rallied 70.8% to a peak of $130.37 in early June following an earnings beat on May 13.

⏳ The completion of a 161.8% Fibonacci extension marks the end of the bearish correction from the April 2000 peak.

πŸ›‘οΈ Buyers must successfully defend the lower flag boundary to maintain the integrity of the potential bullish setup.

Bullish Signals
  • CSCO completed a multi-year base breakout in early June 2025, establishing a long-term uptrend structure.
  • The stock reached a peak of $130.37 in early June, representing a 70.8% advance from the prior swing low.
  • A potential bullish flag pattern remains intact on the daily chart, suggesting a possible continuation if support holds.
  • The price action aligns with a completed 161.8% Fibonacci extension of the bearish correction from the April 2000 peak.
Risk Factors
  • CSCO has broken decisively below its 50-day moving average, which was previously acting as key support.
  • The weekly Relative Strength Index (RSI) dropped below 70, indicating the stock has moved out of overbought territory.
  • A bearish shooting star pattern formed on the June monthly candlestick and was confirmed by a drop below $112.86 in July.
  • The stock is currently testing support for the second time this month, raising concerns about potential further downside if levels are breached.
Full Analysis
Cisco Systems (CSCO) stock is currently testing a critical technical support level near $109.72, which corresponds to the 38.2% Fibonacci retracement of its recent rally. The shares recently hit a new low of $110.22 and have decisively broken below their 50-day moving average, shifting that indicator from a support zone to resistance. This breakdown signals weakening momentum as the stock exits overbought territory on the weekly Relative Strength Index (RSI). The recent price action follows a significant rally where CSCO peaked at $130.37 in early June, driven by an earnings report released on May 13 and a multi-year base breakout starting in June 2025. However, the June monthly candle formed a bearish shooting star pattern, confirmed in July when prices fell below $112.86. Analysts note that if the current support fails, the next downside targets are the 50% retracement at $103.34 and the rising 20-week moving average. Despite the short-term correction, a potential bullish flag pattern remains intact on the daily chart, bounded by declining trendlines. The integrity of this pattern depends on whether buyers can defend the lower boundary near the Fibonacci levels. If support holds, the pullback may be viewed as a healthy correction within a longer-term uptrend; however, a failure could indicate more significant selling pressure and a deeper corrective phase before demand recovers.