JNPR runs into sellers around 24.95 for the third day in a row
Juniper Networks Inc. (JNPR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
JNPR finished the week 2.02% higher at 24.24 after tanking $0.70 (-2.81%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day loss in over two weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (JNPR as at Feb 14, 2020):
Friday's trading range has been $0.75 (3.01%), that's above the last trading month's daily average range of $0.59. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for JNPR.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on February 6th, JNPR actually gained 2.77% on the following trading day.
Prices are trading close to the key technical support level at 24.01 (S1). Juniper Networks closed back below the 100-day moving average at 24.45. The share ran into sellers again today around 24.95 for the third trading day in a row after having found sellers at 24.97 in the prior session and at 24.97 two days ago.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could accelerate should prices move below the close-by swing low at 24.01 where further sell stops might get triggered. With prices trading close to this year's high at 25.00, upside momentum could speed up should the stock be able to break out to new highs for the year. Trading close to December's high at 25.12 we might see further upside momentum if potential buy stops at the level get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Juniper Networks. Out of 79 times, JNPR closed higher 51.90% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.23% with an average market move of 0.88%.