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Fan Yang

Cisco (CSCO) Retreating After Mini-Double Top; $54-$55 Will be Key

Cisco $CSCO recently broke above a key resistance around $57.50 in July. However, after a double top around $58, price is now sliding. I think the overall market is bullish-neutral. It looks like the breakout failed to extend the prevailing bullish mode. Instead, CSCO still has one foot in consolidation mode. 

CSCO Daily Chart

(click to enlarge)

Key Support:
- Because the market is bullish-neutral, I think there is a strong possibility that price won't retreat back to the $51.20-$52 support area. 
- Instead, the $54-$55 area will be key. This area involves a common support pivot, and is in the middle of the current consolidation zone.
- However, if price breaks below $54, then something is wrong. In this scenario, price will likely fall to the $51-$52 area, with the potential of extending lower to the $49-$50 area. 
I currently don't have any exposure in Cisco at the moment. I plan to have dry powder ready around $55 and $52. 

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