Don't Ignore This Chart!

Will Seasonal Tailwinds Stem The Tide Of Selling In This Technology Company?

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Juniper Networks (JNPR) was under heavy selling pressure last week to open October, a seasonally bullish month for JNPR as the stock has averaged gaining more than 13% each October over the past two decades.  The irony here is that we've seen JNPR twice in recent years open October in the same bearish manner (black circles below) only to bounce off trendline support.  Check this out:

While JNPR has been able to maintain an uptrend over the past five years, it's fairly remarkable considering that its industry group - Dow Jones U.S. Telecommunications Equipment Index ($DJUSCT) - has badly lagged its technology peers over the same time period.

While last week was horrid for shareholders, the bullish engulfing candle on Friday (not shown in above weekly chart) suggests that October 2017 could mark a short-term bottom similar to October 2016 and October 2014.

Happy trading!

Tom 


 

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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