CISCO SYSTEMS RISES ABOVE MA5 DESPITE RATING DOWNGRADE
Cisco Systems is currently trading at 47.83-higher by 0.53% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 1.1%. The stock has pared all of its losses after the opening bell.
Morgan Stanley on Tuesday downgraded its rating on stocks of the networking equipment maker to equal weight from overweight citing slowing growth in the company’s networking security business. The investment bank has a price target of $49 a stock of Cisco.
Morgan Stanley also said that although Cisco is steadily executing on the Security opportunity but the current pace is unlikely to offset deceleration in the traditional hardware cycle. Cisco Systems stock has added 17% over the last 12 months.
On the technical front, the current price is above the MA5. The current price is above the middle line of the Bollinger Bands and is heading upwards. The RSI is currently at 66.25% and suggests that the market can move in the upward direction.
TRADE SUGGESTION- LIMIT BUY AT 47.75 TAKE PROFIT AT 48.10 STOP LOSS AT 47.55