The very first device that resembled the router was the Interface Message Processor (IMP); IMPs were the devices that made up the ARPANET, the first TCP/IP network. However, it was Cisco that made the router a household name. Cisco, which went public all the way back in 1990 is one of the last tech dinosaurs from the dotcom era and is still alive and well. But on Thursday, Cisco laid off close to 500 employees at their San Jose and Milpitas offices and issued guidance that was below Wall Street expectations.
Shares fell as much as 8% in its biggest one-day percentage loss since May 2017. Closing with a decline of that magnitude would represent Cisco’s worst session since November 2013, according to historical data compiled by Bloomberg. At current levels, Cisco is trading at its lowest level since February, and it has dropped more than 18% from a peak in July.
The Chinese market was seen as a major factor behind weakness in service-provider orders, and Morgan Stanley wrote that “outsized” macro headwinds “were too much to provide much opportunity for upside.” The firm was one of at least six to trim its price target on the stock.
So why did shares fall 18% from the peak in July, quite simple price hit a long standing monthly supply zone at
And on the earnings report, price completed a “M” pattern, confirmation of a reversal.
I’m not sure if price makes it back up to the daily supply at the chart suggests to short the stock,
with a price target at the major support line at $40.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.