Cisco Set For Technical Breakout As Golden Cross Signals Strength: Analyst Predicts Stock Will 'Quietly' Climb Higher

Written By Michael Gary Scott







Cisco Stock Positioned for Technical Breakout Amidst Positive Signals

The Rise of Cisco: A Quiet Strength Unveiled

While the roar of news headlines may not be echoing for Cisco Systems Inc., it is silently orchestrating a compelling narrative poised for a remarkable technical breakout.

Steered by the emergence of a Golden Cross, seasoned tech analyst Jim Lebenthal of Cerity Partners recently gave a nod to Cisco stock on CNBC’s ‘Halftime Report Final Trades,’ foreseeing a scenario where the stock stealthily ascends to a fresh peak for the year.

Chart created using Benzinga Pro

Even against the backdrop of significant layoffs, with a 7% reduction in headcount in August following an earlier 4,000-employee downsizing in February within the realm of Cisco’s 2024 endeavors, the company’s trajectory is one of resilience.

These adjustments are aligned with Cisco’s strategic vision to “invest in key growth opportunities,” as the tech giant notched up its second-most lucrative year, boasting revenue close to $54 billion.

Chart created using Benzinga Pro

From a technical vantage point, the Golden Cross illuminates a bullish path, with Cisco’s shares soaring to $53.05—above both its 50-day and 200-day moving averages of $49.06 and $48.74, correspondingly. The stock’s eight-day SMA of $52.46 and 20-day SMA of $50.76 further affirm the bullish trajectory across short, medium, and long-term metrics.

In the face of some selling pressure, Cisco’s stock has surged by an impressive 5.91% in the past month and harbors a nearly 5% uptick year-to-date.

Lebenthal’s optimistic outlook harmonizes with these upward technical signals, hinting at a path paved with further gains on the horizon.

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As investors monitor this stealthy giant, the Golden Cross could act as a potent force propelling Cisco stock to unprecedented highs, regardless of the challenges encountered throughout this year.

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