Cisco is gearing up for its earnings report tomorrow, and its stock is currently trading at around $58.91 in the pre-market, up 0.4%. On the weekly chart, Cisco has been on a strong upward trajectory, rallying nearly 30% since the August lows. This week, the stock is testing a significant resistance level at $58.17, with a potential for a bullish close above it. A close below this resistance could signal some short-term weakness, potentially leading to profit-taking after the recent surge.

For support, Cisco has a near-term level of around $54.33. A break below this support could open the door for further downside, targeting the $51.50–$52.50 range where additional support zones are located. Conversely, if Cisco breaks and closes above the $58.17 resistance, it could drive momentum toward its 2021 high of $64.64, marking a potential 10% upside from current levels.

According to TipRanks, options volume suggests a possible move of +/- 5.48% post-earnings, though stocks can often exceed anticipated moves. From a momentum standpoint, Cisco’s technical indicators are bullish. The Moving Average Convergence Divergence (MACD) is steep and rising, and the Relative Strength Index (RSI) stands at 70, indicating strong bullish momentum. However, the RSI is now in overbought territory, suggesting that some investors may take profits ahead of the earnings announcement.

Key Highlights:

• Current Price: Trading at around $58.91 in pre-market, up 0.4%.
• Key Resistance: Testing resistance at $58.17; a close above could drive price toward $64.64.
• Support Levels: Near-term support at $54.33, with additional support in the $51.50–$52.50 range.
• Earnings Move Expectation: Options volume implies a +/- 5.48% move, though actual shifts could be greater.
• Technical Indicators: MACD shows strong upward momentum; RSI at 70 suggests bullish sentiment but hints at potential overbought conditions.

Investors will be watching Cisco’s earnings closely, as any surprise could drive the stock toward or past key technical levels, shaping its trend for the near term.