Strategy and trading analysis on shares of the company Cisco 11-21-2016 by AzaForex forex broker, personal foreign exchange trading tips that make sense

The stock price of Cisco, after a small sideways, fell sharply on the stock exchanges. Management of Cisco Systems Inc. announced the tax revenues in the first quarter, after the market closes. After first quarter revenues, the management predicts lower financial forecasts in the second quarter of this year. After these statements, investors showed a lot of disappointment in the management of the company and began to sell the shares, which caused a drop of about 5% on Thursday. On Friday afternoon, stocks were able to recover its position slightly, but only 0.43%. Cisco General Manager urged investors not to pay attention to the figures of the current quarter, attributing the decline in profit due to large service providers, assuring that nothing is to worry about. He also asked to pay attention to the performance of key growth segments, which bring company's regular income. Despite macroeconomic factors, some analysts blamed weak leadership of the company in losing market share. Some analysts suggest, Cisco business of the company is reduced due to increased competition from rivals in the market. On the other hand, it may be noted Cisco's advances in plant safety, its cash flow growth and prospects for the software and services.
But all these assurances and predictions failed to regain lost ground of shares movement in the graph. If pessimism of investors and traders will prevail, it is quite possible that we will see further downside. Therefore, if the price will go down and further down below 29.55, we will open a short position.
The price is below a simple moving average 200 MA and 20 MA indicating bearish trend.
The MACD trend indicator is below zero level now, indicating bearish movement.

If the support level is broken you can use the following recommendation:
•    Chart timeframe: H4
•    The trade recommendation: Sell
•    The level of entry into short position 29.55
•    The level of profit and close the position: 28.65 (90 pips)


Forex currency pair EURUSD
Possible bearish movement in the breakdown of the support level 1.0560

Forex currency pair USDJPY 
Possible bullish movement in the breakout of the resistance level 111.20

Precious metal GOLD
Possible bearish movement in the breakdown of the support level 1202
 
Forex currency pair USDCHF
Possible bullish movement in the breakout of the resistance level 1.0120