JNPR still stuck within tight trading range
Juniper Networks Inc. (JNPR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
JNPR finished Wednesday at 23.22 gaining $0.12 (0.52%) on low volume, outperforming the S&P 500 (-0.46%). Trading $0.23 higher after the open, Juniper Networks was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 8th, JNPR actually gained 2.07% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (JNPR as at Sep 16, 2020):
Wednesday's trading range has been $0.39 (1.67%), that's slightly below the last trading month's daily average range of $0.51. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JNPR. Prices continued to consolidate within a tight trading range between 22.84 and 23.56 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Prices are trading close to the key technical support level at 23.02 (S1). Prices are trading close to the key technical resistance level at 23.60 (R1).
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the nearby swing low at 22.73 where further sell stops might get triggered. As prices are trading close to September's low at 22.63, downside momentum could speed up should the stock mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Juniper Networks. Out of 537 times, JNPR closed higher 52.70% 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 51.58% with an average market move of 0.42%.