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

On the daily chart, the price is correcting, working out the recent price gap of 52.70–47.00.

On the four-hour chart, the potential for continued growth remains, which confirms that the quotes are above the initial correction level of 23.6% at Fibonacci 49.00. The key marker for continuing upward dynamics is the intermediate correction level of 38.2% Fibonacci 50.70, consolidation above which let the asset close the gap and reach 52.70.

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

Trading tips

Long positions may be opened after the price rises and consolidates above 50.77 with the target at 52.20. Stop loss is around 50.00. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 49.00 with the target at 47.62. Stop loss – 50.00.