Juniper Networks, Inc. (NYSE: JNPR)

Juniper Networks, Inc. designs, develops, and sells products and services for high-performance networks worldwide. The Platform Systems Division segment offers scalable routing and switching products that are used in service provider, enterprise, and public sector networks to control and direct network traffic between data centers, core, edge, aggregation, campus, wide area networks, and consumer and business devices. The Software Solutions Division segment offers solutions focused on network security and network services applications for service providers and enterprise customers. The company also offers technical support and professional services, as well as educational and training programs. It sells its network products and services through direct sales, distributors, value-added resellers, and original equipment manufacturer partners to end-users in the service provider and enterprise markets.

Take a look at the 1-year chart of Juniper (NYSE: JNPR) with the added notations:

1-year chart of Juniper (NYSE: JNPR)

JNPR was rallying nicely up until the beginning of this year. However, after declining into April, the stock had been trading sideways for the last few months while holding an important level of support at $24 (blue). Last week the stock finally broke that support. After its recent retest of $24, JNPR should be moving overall lower from here.

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The Tale of the Tape: JNPR had a key level of support at $24. Now that the stock has broken support, a trader might want to enter a short trade at or near the $24 level with a stop placed above that level. A break back above $24 could negate the forecast for a move lower.

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Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach