Earnings reports are always a bit tricky, but if you can automatically eliminate one side of the trade, then it makes things much easier. Cisco Systems (CSCO) is expected to report tonight and they have yet to miss on earnings expectations. If traders were to see cEPS below $0.47 or GAAP EPS below $0.38 pending any one time items then a significant drop in price may be expected. Similar to EPS, traders may look for a disappointment in revenue to begin a sell off. Anything below $11.5 Bil could be statistically significant and there could be some downside.
Important levels include $19.37, $19.58 and $20.21. If there were to be a surprise to the upside watch for these levels to be resistance.
See the report below for greater detail.
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