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What Technical Indicators Say about Cisco Stock

Anne Shields - Author
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Jun. 6 2017, Updated 9:05 a.m. ET

Shareholder returns and stock trends

So far in this series, we’ve discussed Cisco Systems’ (CSCO) recent acquisitions and their outlook for the company’s future. Let’s have a look at the technical indicators that traders and investors rely on to make market entry and exit decisions. Moving averages and RSI (relative strength index) scores are among the most widely used technical indicators.

On May 26, 2017, Cisco (CSCO) stock rose ~8.9% in the trailing-12-month period. However, in the trailing-one-month period, it fell ~7.5%. CSCO rose ~0.93% in the trailing-five-day period. Previously in this series, we looked at several factors that played a role in Cisco’s stock roller coaster ride this month.

In comparison, FireEye (FEYE) and Symantec (SYMC) have generated returns of -0.54% and ~2.0%, respectively, in the trailing-five-day period. Palo Alto Networks (PANW) generated a positive return of ~1.4% in the same period.

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Cisco’s moving average convergence divergence

On May 26, 2017, Cisco’s last trading price was $31.50. The stock was trading 4.5% below its 20-day moving average of $33.00 and 4.5% below its 50-day moving average of $33.00. It was trading 4.5% below its 100-day moving average of $33.00.

A company’s MACD (moving average convergence divergence) is the difference between short-term and long-term moving averages. Cisco’s 14-day MACD of -0.30 shows a downward trading trend because the figure is negative.

You can consider investing in the SPDR S&P 500 ETF (SPY) (SPX) to gain exposure to the technology sector. This ETF has ~18.0% of its holdings in the technology sector.

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