Bearish Trend In Cisco Stock Ahead Of Q2 Earnings: Technical Analysis - Cisco Systems (NASDAQ:CSCO)

Cisco Systems Inc CSCO, will be reporting its second-quarter earnings on Feb. 14. Wall Street expects 84 cents in EPS and $12.71 billion in revenues as the company reports after market hours.

Cisco is a U.S. technology company that is best known for its networking products. The company is reportedly set to restructure its operations, potentially resulting in thousands of job cuts, as it aims to prioritize high-growth sectors.

Related: Cisco Plans Restructuring, Potential Job Cuts As Focus Shifts to High-growth Sectors: Report

Cisco Stock Technical Setup Ahead Of Q2 Earnings 

The technical analysis setup of Cisco stock points towards a strongly bearish trend. The share price is currently below its 5, 20, and 50-day exponential moving averages, indicating a pronounced bearish sentiment in the market.

Furthermore, the 20-day SMA at $50.77, and the 50-day SMA at $50.14, and the 200-day simple moving average at $51.48 are all above the current stock price of $49.94, reinforcing the bearish sentiment.

Additionally, the Moving Average Convergence Divergence (MACD) indicator is -0.2, affirming the bearish signal. Although the Relative Strength Index (RSI) at 41.26 suggests that Cisco Systems is almost at oversold conditions.

Moreover, both the Bollinger Bands (25) and Bollinger Bands (100) indicators, with ranges of (49.8 – 51.56) and (49.18 – 53.06) respectively, support the overall bearish outlook for Cisco Systems.

Hence, multiple technical indicators indicate a prevailing bearish trend for CSCO stock, suggesting caution for potential investors.

Cisco Analysts Consensus Ratings

Ratings & Consensus Estimates: The consensus analyst rating on Cisco stock stands at a Neutral with a price target of $50.40.

CSCO Price Action: Cisco stock was up 0.6% to $49.94 at the time of publication Wednesday.

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