• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Charting Cisco After a Mixed Earnings Report

The rally in CSCO has weakened and we get stopped out.
By BRUCE KAMICH
Nov 18, 2021 | 10:42 AM EST
Stocks quotes in this article: CSCO

In his third "Executive Decision" segment of Wednesday's Mad Money program, Jim Cramer checked in with Chuck Robbins, CEO of Cisco Systems (CSCO) , the network equipment maker.

The company just posted mixed earnings.

Robbins explained that orders grew by 33% in the quarter and that's the metric that investors should be focused on. There were some supply-chain challenges and component shortages which ultimately crimped the company's earnings but orders will eventually get filled.

Adding to Cisco's growth is their transition into software. The company now has $21.6 billion in annual recurring revenue, Robbins said. He remained committed to their prior full-year earnings estimates.

Robbins added that there are still many secular growth trends going in their favor, including the transition to 5G wireless, Wifi6 and 400G ethernet.

Let's check on the charts of CSCO to see how Thursday's opening has changed the charts.

In the daily bar chart of CSCO, below, we can see that the shares have broken back below the 50-day moving average line and are testing the rising 200-day moving average line.

The On-Balance-Volume (OBV) line is pointing lower and tells us that sellers of CSCO are being more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit sell signal.

In this weekly Japanese candlestick chart of CSCO, below, we do not have Thursday's price action but we can imagine that prices are trading below the rising 40-week moving average line.

The weekly OBV line is pointed lower and so is the MACD oscillator.

In this daily Point and Figure chart of CSCO, below, we can see a column of down "O's" and a new potential price target of $46.

In this weekly close only Point and Figure chart of CSCO, below, we still have an upside price target. Further price weakness could weaken the picture.

Bottom-line strategy: Our long recommendation should be stopped out as prices gapped down to our $53 stop suggestion. Stand aside so we can see if this downside gap starts a trend lower or it represents selling exhaustion. Too soon to tell.

(CSCO is a holding in the Action Alerts PLUS member club . Want to be alerted before AAP buys or sells this stock? Learn more now. )

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Software & Services | Technology | Technology Hardware & Equipment | Telecommunications | Mad Money | Executive Interview

More from Stocks

Could Pioneer Natural Resources Rally Soon?

Bruce Kamich
Mar 27, 2023 1:58 PM EDT

Here's what aggressive traders could do.

Take a Fresh Look at Where You Put Your Cash

Peter Tchir
Mar 27, 2023 12:40 PM EDT

Let's get back to the basics of cash reallocation and see why I'm not freaking out, but I'm also not in a mood for risk.

Why Market Indexes Are Often a Poor Measure of What's Really Going On

James "Rev Shark" DePorre
Mar 27, 2023 11:55 AM EDT

We are witnessing one of the most extreme disconnects in decades between the Nasdaq 100 and Russell 2000.

What the Fed Has Wrought

Bret Jensen
Mar 27, 2023 11:00 AM EDT

Damage From the central bank's policy mistakes are likely to keep growing.

Movado Shows Now Isn't the Time to Issue Disappointing Guidance

Jonathan Heller
Mar 27, 2023 10:35 AM EDT

The watchmaker saw its shares hammered on its outlook, which is a cautionary tale for other stocks.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:56 PM EDT PETER TCHIR

    Very Cautious

    I am very cautious here. I don't like how the c...
  • 08:58 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How to Adjust Your Trading Style as Market Conditi...
  • 05:00 PM EDT CHRIS VERSACE

    AAP Podcast on the Fed Decision!

    Listen here!
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login