Cisco (CSCO): Ready for a Post-Earnings Drop?

As we approach Cisco's earnings report, it's time for another pre-earnings analysis. We're examining both the higher time frame and then zooming in for a closer look. On the higher time frame (Daily), Cisco is following a nearly perfect trend channel. While a retest of the lower range of this trend channel seems the most probable, I suspect that the price could breach this level and wick into our target zone between $38 and $32.



If this scenario unfolds as anticipated, it could present a great opportunity to take a long position in Cisco, potentially holding into 2025 for more significant gains.

The bearish outlook is further supported by a shoulder-head-shoulder formation that has caught our eye. Although we typically don't trade based on these formations, this one is hard to ignore. Ideally, we'd see a breach below the lower trend channel range, followed by a retest, and then a sell-off into our target zone.

We're watching closely for the first signs of movement following Wednesday's earnings report.