Cisco Is Dipping Below Support

New York, October 22nd (TradersHuddle.com) - Shares of Cisco Systems, Inc. (NASDAQ:CSCO) closed the trading session at $18.04 below calculated support at $18.15. The stock broke down technically, raising concerns as the move might trigger additional selling.Cisco Systems, Inc. (NASDAQ:CSCO) supplies data networking products for the Internet. The Company's Internet Protocol-based networking solutions are installed at corporations, public institutions, home networks and telecommunication companies worldwide. The Company's solutions transport data, voice, and video between networks and computers around the world. Cisco was founded in 1984 and its headquartered in San Jose, CA.

Cisco's stock was trading in a well defined range with support at $18.15 and resistance at $19.40; given that this range was broken traders will be closely monitoring the stock's price action for clues of direction.

From a technical perspective, it can be expected that previous support becomes resistance, as the new range gets defined. However, $18.15 will remain in focus as Cisco's price action places the stock near the broken support. Traders will be waiting to see if it can bounce back and return to its previous range.

Traders wanting to establish a short position in Cisco can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $18.15. However, if traders want to build a long position, the best entry point to do so is when the price action takes the stock back to calculated support.