Cisco Stock Plunges 7.26% In Three Days As Bearish Technicals Accelerate Selloff

Cisco Systems (CSCO) declined 4.47% to $66.20 in the latest session, marking its third consecutive daily loss and a cumulative 7.26% drop over this period. The analysis below examines technical dynamics using price data from August 2024 to August 2025.
Candlestick Theory
The last three sessions formed a bearish "Three Black Crows" pattern with progressively larger bodies, signaling accelerating selling pressure. This breakdown breached the $68.50-$69.50 support zone (consolidation area from mid-July) and invalidated the ascending trendline from May 2025. Critical resistance now converges near $69.80-70.40, coinciding with the breakdown point and prior reaction highs. Downside support emerges around $65.25 (June swing low).
Moving Average Theory
The 50-day SMA (approximately $67.40) crossed below the 100-day SMA ($68.20) last week, confirming a bearish near-term structure. Current price trades below both averages, while the 200-day SMA ($61.80) still slopes upward. This configuration—price below all key moving averages, with shorter periods under longer ones—suggests entrenched downward momentum. Sustained trade below the 200-day SMA would signal a potential long-term trend shift.
MACD & KDJ Indicators
MACD crossed below its signal line two weeks ago, with the histogram expanding negatively to its weakest reading since May. KDJ’s %K (17) and %D (24) plunged into oversold territory, though without divergence. Both oscillators indicate strong bearish momentum, though the KDJ’s extreme position increases the probability of a technical rebound near the $65.25 support level.
Bollinger Bands
Price breached the lower band ($67.20) on the last session as volatility expanded—band width increased 30% in three days. This oversold breakout typically precedes either accelerated selling or a mean-reversion bounce. A close back within the bands would support stabilization, while continued lower-band rejection suggests further downside toward $64.50.
Volume-Price Relationship
Volume surged 38% during the three-day sell-off versus the prior month’s average, validating bearish conviction. However, notable accumulation occurred near $66.00 on the last session (largest volume bar in August), creating a potential springboard for rebounds. Sustained trade below $65.80 on high volume would confirm breakdown continuation.
Relative Strength Index (RSI)
The 14-day RSI (32) entered oversold territory, nearing May and June’s reversal levels. While this warns of excessive selling pressure, RSI divergence is absent—price and RSI made concurrent lows. Historically, sub-30 readings have triggered tactical bounces at Cisco, but such signals require confirmation during active downtrends.
Fibonacci Retracement
Using the $49.46 (August 2024 low) to $72.03 (August 2025 high) rally, key retracements include:
- 23.6% at $66.50 (current price near this level)
- 38.2% at $63.50 (aligns with April 2025 resistance-turned-support)
Confluence exists at the 23.6% level with psychological $66.00 support, making this a critical defense zone. A decisive break targets $63.50 next.
Confluence & Divergence
Multiple indicators concur on near-term bearishness, including moving average alignment, candlestick breakdown, and volume-supported downside. No significant divergence exists—momentum oscillators validate price action. However, the oversold RSI/KDJ readings and Bollinger Band breakout highlight elevated rebound risk near $65.25-$66.00 (2023 low and 23.6% Fib support). Should Cisco stabilize above this zone, consolidation likely precedes the next directional move.