Cisco Systems, Inc. (CSCO) is engaged in networking hardware, software, cybersecurity, and cloud solutions and trades on the NASDAQ. The company saw a sharp decline between March 2000 and October 2022, losing 90% from its all-time high of around $82 down to $8.<\/p>\n
Following October 2022, CSCO has experienced a recovery exceeding 90%, yet it hasn’t surpassed its previous peak. From an Elliott Wave view, the cycle from October 2002 is forming an impulse wave. Super-cycle degree waves (1) and (2) ended in September 2023 and August 2024.<\/p>\n
A pullback occurred for wave 2 of (3) into April 2025, initiating a bullish market phase. Wave ((1)) of 3 advanced from the April 2025 low to an August 2025 high, with wave ((2)) correcting it. <\/p>\n
The current pullback is a zigzag pattern leading to a buying zone at $63.98\u2013$59.72. This offers potential for significant gains, with a potential bounce extending wave ((3)) of 3 to $70\u201397. A suggested strategy is a long entry near $64 with a stop at $59, targeting a 1:3 to 1:6 risk-to-reward ratio.<\/p>\n
We see the current pullback in Cisco as a prime entry point within a long-term bullish trend. The stock has been correcting since its August 2025 peak, and it is now approaching a key support zone between $63.98 and $59.72. This area represents an ideal place to consider bullish derivative strategies.<\/p>\n
This technical setup is supported by solid fundamentals, as we saw in the last earnings report where Cisco beat expectations on strong demand for its AI-driven networking hardware. Recent industry forecasts also project a significant increase in enterprise IT spending on cybersecurity and cloud infrastructure through 2026. This provides a strong tailwind for Cisco’s core business segments.<\/p>\n
The broader market environment supports this view, with the Fed striking a neutral-dovish tone in recent speeches. The latest CPI data from September showed inflation moderating to 3.1%, reducing the likelihood of further rate hikes which helps established tech names. This creates a favorable backdrop for equities to resume their upward trend after the recent market-wide correction.<\/p>\n
For derivatives traders, this suggests a few clear strategies in the coming weeks. Buying call options with expiration dates in early 2026 allows for participation in the expected rally toward the $70 target and beyond. Alternatively, selling cash-secured puts with a strike price near $60 could be an effective way to collect premium while defining a lower entry point.<\/p>\n
It is crucial to manage risk around the $59 level, which is the line in the sand for this bullish thesis. A decisive break below this price would invalidate the immediate upward scenario and likely trigger stop-loss orders. We note that implied volatility has ticked up during this pullback, making options premiums slightly more expensive but also offering better returns for premium sellers.<\/p>\n","protected":false},"excerpt":{"rendered":"
Cisco forms bullish impulse wave; buying zone near $64 targets $70\u201397 with strong risk-to-reward potential.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-32226","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t