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
