Nearest Support: $24
Catalyst: Earnings, Layoffs >>5 Tech Stocks to Watch for Breakout Trades Despite strong performance in 2013, Cisco Systems ( CSCO) is reeling after posting anything but a strong fourth-quarter update on its business. Analysts had been expecting a profit of 51 cents per share, and even though Cisco beat that best guess by 1 cent, the firm is off more than 6.6% on a weak outlook and news that it's shedding 4,000 jobs. Cisco's $132 billion market cap means that its shaky guidance could spell trouble for the broader industry, so investors are selling this stock off. From a technical standpoint, Cisco's big gap down this morning spells trouble. While the stock had been in a well-defined uptrend since May, that trendline got broken with traders' reactions to the news. That points to lower ground ahead for CSCO. I'd recommend staying away from the long side of this name for the time being.