JNPR Watch

The networking infrastructure company Juniper Networks Inc. JNPR) is trading nearly 5% above Thursday's close with a volume bump that has reached 30% with 100 minutes of trading left. There's no news to account for the rise, but earnings are scheduled for July 20 after the markets close.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
JNPR $24.08

The rise on volume comes with a switch to bull phase on Person's Proprietary Signal and the macd. The fast stochastic is also moving up through the neutral zone in a bullish pattern. Only the parabolic sar is holding out, no doubt muttering "Kids today. What do they know."

Today's rise is a sudden reversal from a swing low, on Thursday, of $22.25 and puts the price right below the 20-day simple moving average. This stock needs to work a bit before I can call it an uptrend.

The high so far today, $24.36, is 4¢ below a $24.40 minor reversal level set on July 28.

The stock has been in a downtrend since the swing high of $32.16 on April 15. To be considered in an uptrend, the stock would need to exceed the July 21 reversal peak of $26.09, decline while staying above $22.25, and then reach a new, even higher level above $26.09.

Getting in at this early point amounts to bottom fishing, but the despite the dire warnings against the practice by dour-faced traditionalists, I've always found pretty good fishing in the muck and mire at the bottom.

The key to successful bottom fishing is to act like a rabbit (shamelessly mixing metaphors here): Keep your eyes open for signal or price reversales, and get out with remorse when they occur.

Reversal Levels

• $26.09, +8.4%
• $24.40, +1.3%
• $24.08 <== You are here.
• $22.25, -7.6%

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Disclaimer

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.