Cisco (CSCO) pullback is not over further downside to come
|Cisco Systems, Inc., commonly known as Cisco (CSCO), is an American-based multinational digital communications technology conglomerate corporation headquartered in San Jose, California. Cisco develops, manufactures, and sells networking hardware, software, telecommunications equipment and other high-technology services and products.
CSCO daily chart October 2023
Last October, we talked about an alternative view on CSCO. That was wave (II) has not finished and it could do a double correction. After 3 waves higher we cannot rule out a double correction until we see a clear impulse higher. In June, we suggested that CSCO shares price should continue to rise to the $57.66 – $60.52 area. Thus, the price should be rejected from this zone opening the possibility of a double correction that sends the price below $38.73. The market ends a new high at $58.19 in the area and the market was rejected. Actually, the path still could not break above $58.19 and it is more like to expect more downside. (If you want to learn more about Elliott Wave Theory, please follow these links: Elliott Wave Education and Elliott Wave Theory).
CSCO daily chart March 2024
In the chart above, we can see a double correction structure formed from wave X. Down from 58.19 high, CSCO dropped in 3 swing ending wave (W) at 50.95. Wave (X) pullback did a small bounce at 53.50 high and continue lower. The movement was strong finishing at 44.70 to complete wave (Y) structure and also Wave ((W)) in higher degree. Currently, CSCO is building wave ((X)) connector. Up from 44.70 low, market did 3 swings higher to end wave (W) at 52.86 and pullback as wave (X) ended at 46.90 low and resumed higher. Market is trading in wave (Y) and we should see 3 swings higher above 52.86 to end wave (Y) and ((X)) correction before turning lower in wave ((Y)).
CSCO alternative daily chart March 2024
The difference of this alternative chart with the main view, it is just wave ((X)) is completed at 52.62 high. While price action stays below this level, we are looking further downside double correction structure.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.