There are not many definitive bearish charts out there right now, but Cisco Systems is one of them. After failing to surpass some heavy resistance prior to earnings in August, the stock has been in complete distribution mode. Every rally has been sold, and there has not been much in the way of support levels on the chart. Relative strength is atrocious, as institutions are using any moment to sell the stock down. I suspect 20 is coming in as an area that may be supportive from previous buying points, but I’ll be in wait-and-see mode. If anything, buying some puts would probably be prudent.
