In today’s Stock of the Day, we’re watching Cisco (CSCO), which is showing early signs of technical weakness after a solid uptrend — and now looks vulnerable to further downside.
At the top of the recent rally, price formed a diamond pattern, marked with red lines. This is a classic reversal structure, and Cisco has now broken out of the diamond to the downside, confirming a sell signal.
The next target sits at the orange horizontal support zone, which has been respected multiple times in the past and currently comes in around $66. This level now becomes the focal point — both for short-term targets and for the next directional clue.
If Cisco bounces off the $66 area, that would be a potential long opportunity, especially if a reversal pattern forms at that level. But if bearish momentum builds and the stock closes below the orange support, that would open the door for a deeper leg to the downside — and signal that sellers remain in full control.
For now, the trend has shifted, the breakdown is active, and all eyes are on how Cisco behaves near the $66 zone.