Cisco Systems Inc

CSCO is in Stage 3 distribution after a decisive Support Failure breakdown. The active Support Failure pattern indicates buyers can no longer defend supply and downside may accelerate. Medium-term bias is bearish with confirmed lower highs and selling pressure, and short-term momentum remains weak below declining EMAs. We will defer execution and trim exposure on strength into the 9/21/50 EMA resistance zone.

• ↑Q3 revenue hit $15.8B (+12% YoY) and non-GAAP EPS rose to $1.06 (+10% YoY)
• ↑Product orders grew 35% YoY, driven by strong enterprise AI demand
• ↓Negative earnings yield suggests shares may be overvalued