SAN JOSE, CA – Shares of Cisco Systems Inc. (CSCO) experienced a significant intraday reversal on Friday, closing in the red after briefly touching a new 52-week high. This price action suggests a potential for a cautious or bearish start to trading next week.
The networking and technology giant ended the session at
0.30 or 0.44%. The day began on a strong note, with the stock opening at
69.22**.
However, this peak proved to be a formidable resistance level. Sellers entered the market with force, pushing the stock down throughout the afternoon to a low of $68.34. While it managed a slight recovery from the day’s low, it closed well below its opening price and the previous day’s close of $68.95.
In a muted post-market session, the stock saw a negligible tick up to $68.66, doing little to offset the bearish sentiment from the regular trading day.
Market Outlook for Monday:
The outlook for Cisco’s stock on Monday appears to lean bearish. The failure to sustain momentum after hitting a new high is a significant technical indicator that investors will be watching closely.
Key factors pointing to a potentially weaker open on Monday include:
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Rejection at Resistance: The sharp sell-off from the 52-week high of $69.22 is a classic sign of a bearish reversal. It indicates that profit-takers and sellers are currently in control at this price ceiling.
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Negative Close on High Volume: A stock that makes a new high but closes down for the day often signals exhaustion in the current rally.
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Break of Support: The stock closed below the previous day’s close, confirming the negative sentiment and a potential shift in short-term momentum.
Barring any significant positive company-specific news or a strong rally in the broader market over the weekend, traders should be prepared for potential follow-through selling pressure on Monday morning. The key question will be whether the stock can find support near the day’s low or if it will continue its descent from its recently established peak.
