Shares of Cisco Systems Inc., an American manufacturer and supplier of network equipment for large holdings and telecommunications companies, are adjusted at 50.00.

On the daily chart, the instrument is trying to work out the recent price gap of 52.50–47.00.

On the four-hour chart, the potential for continued growth remains, and the movement is developing within the local corridor with dynamic boundaries of 51.00–49.40. Despite the corrective declines, the quotes have already filled more than half of the global gap, approaching 52.50. However, after exiting the local downward channel and breaking 49.50, short positions will become relevant.

Technical indicators are holding a buy signal: fast EMA on the Alligator indicator are above the signal line, and the AO histogram is forming corrective bars in the buy zone.

Trading tips

Long positions may be opened after the price rises and consolidates above 50.50 with the target at 52.50. Stop loss is around 50.00. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 49.40 with the target at 47.60. Stop loss – 50.00.