Just like many major technology players, Cisco Systems, Inc. (NASDAQ:CSCO) has been beaten down as a double dip recession is looking likely. Intel Corporation (NASDAQ:INTC) and Ciena Corporation (NASDAQ:CIEN) are two others that have been crushed off their 52 week highs and are sitting near or at their 52 week lows.
While Cisco Systems is having trouble finding buyers, it is coming into a major level on the daily chart. The chart is showing a master support range between $20.00 and $20.50. This level is key because not only is there a major gap fill point but also two other pivot tops from 2009. The combination of these three could signal a short term bottom on CSCO and a possible bounce higher. While a solid bounce is likely, it is unlikely that this will remain the bottom for very long. Note the chart below. If you would like more hardcore analysis, swing trades and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
