Cisco Systems Tests Bottom End Of Trading Range Ahead Of Q4 Report

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Cisco Systems, Inc. CSCO shares were trading lower by $0.11 at $27.91 in Wednesday's session. The company will announce Q4 results after the close. The Street is looking for EPS of $0.56 on revenues of $12.66 billion.

Until today, the issue had been rangebound for quite some time. Since July 13, the issue has been confined to a trading range between $27.42 and $28.77. However, in today's session it retreated the bottom of the range when it declined to $27.41 before rebounding back towards $29.

If the issue rallies off the report and breaches the top of the trading range, the next identifiable resistance may not come in until the pair of highs from June 18 ($29.35) and June 19 ($29.32).

If Cisco disappoints, the next identifiable support comes in at the $27 level. The reason being the issue put in a series of five consecutive lows between $26.89 and $27.02 from July 6-10.