Wednesday, July 27, 2011

Juniper Networks, Inc. (JNPR): Last Night's Post Market Trade of the Day

Click on chart for a larger image with comments - See detailed Arguments below

Multiple Arguments:
  • News   
    • Negative news supporting the big flush down.
  • Post Market level II Traps
    • Clearly visible refreshing seller trying to make the bid look strong the whole way down
  • Momentum- Trend
    • Good partial overnight flow through to next day.
    • We get more news of a record (8) downgrades by analysts after the big earnings disappointment, as JNPR remains pushed down by EMAs.
  • Tradabilty:
    • Defined, manageable, 1-2 point risk, $2-$3 reward
  • Violation of  key daily support level
    • Compression at $28.05 on EMA Daily Avg 
    • Broke 200 day key levels
    • Lower lows, signals an enter short.
  • Overnight Caidate
    • with the big miss you typically have analyst chiming in the next day, in this case a record 8 were off significantly on their targets

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