Cisco’s strength challenged coming into 2023

Cisco Systems, Inc.  (CSCO) made somewhat consistent profits throughout the last quarter of 2022 with some sideway movement on the share price in the 6 weeks. The company’s earnings report for the fiscal quarter ending December 2022 is set to be released on Wednesday, 15 February, after market close. The consensus EPS for Q4 is $0.76 compared to Q4 2021’s $0.77. 

The latest current ratio of the company (meaning the ability of the company to repay its short-term liabilities) is at 1.43 which, in combination with a payout ratio of 54.51%, shows that the company is healthy, at least in the short-term. This in combination with the dividend yield of 3.20% makes the company an attractive addition to an investor's portfolio.

Based on technical analysis, the share price is trading on a major technical resistance which consists of the 20 and 100-day moving average and the 23.6% of the daily Fibonacci retracement level. 

The Stochastic oscillator is not indicating any overbought or oversold levels, so based solely on technical analysis principles, the most possible scenario could be the continuation of the bearish movement—at least in the short term.

If this scenario is confirmed in the following sessions we might expect some support around the $46 price area which consists of the 38.2% of the Fibonacci and also the lower band of the Bollinger bands.

This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.

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Author:

Antreas Themistokleous

Antreas Themistokleous is a trading specialist in Exness. He is a Certified Financial Technician since 2018. As a member of the Society of Technical Analysts, Antreas is implementing advanced use of indicators and patterns to conclude in an action plan for different trading strategies.