Current trend

Shares of Cisco Systems Inc., an American manufacturer and supplier of network equipment for large holdings and telecommunications companies, are adjusted at 53.33.

Yesterday it became known that Cisco Systems Inc. opened a deal to acquire technology company Splunk Inc. for 28.0B dollars, which became the largest in the sector this year. The final offer includes a price of 157.0 dollars per share of the target company, an increase from 145.0 dollars per share at the time of announcement. If regulators approve the purchase, it could be fully completed by the third quarter of 2024.

The financial report will be published on November 15, and management expects EPS in the range of 1.02–1.04 dollars per share, which coincides with analysts’ forecasts of 1.03 dollars per share. Revenue is expected to be 14.5B–14.7B dollars, compared to experts’ estimates of 14.63B dollars. The estimates fall well short of the second quarter’s 15.2B dollars in revenue and 1.14 dollars in earnings per share.

Support and resistance

On the daily chart, the price is moving in a corrective trend below the support line of the ascending channel with boundaries of 54.00–58.00.

Technical indicators are strengthening the global sell signal: the EMA fluctuation range of the Alligator indicator is actively expanding, and the AO histogram is forming corrective bars below the transition level.

Resistance levels: 53.90, 55.30.

Support levels: 52.10, 50.00.

Trading tips

Short positions may be opened after a decline and consolidation below 52.10 with the target at 50.00. Stop loss – 53.00. Implementation period: 7 days or more.

Long positions may be opened after the price rises and consolidates above 53.90 with the target at 55.30. Stop loss – 53.50.