One notable thing about this week's technical trading opportunities is just how similar many of them look. By and large, we're looking at stocks that are threatening to break out after bottoming early in October. Part of that is thanks to the excessively high correlations that continue to keep asset classes in lockstep with one another.
A perfect example of that is Juniper Networks (JNPR), the $12 billion IT networking firm.
Juniper bottomed at the start of October, signaling a reversal with the bullish engulfing candle that thrust shares back to the $18 level. This stock has seen strong resistance at $22 since early August -- and that level finally got tested again yesterday. Positive continuation this morning would generate a buyable signal for shares.The major gap in Juniper from July essentially opens up a pretty large void where shares haven't changed hands - that opens up the upside for a more significant price target just shy of $30 for swing traders. On that trade, I'd suggest placing a protective stop just below the 50-day moving average. Juniper, recently featured in "5 Tech Stocks Poised For Big Earnings Moves," was one of Goldman Sachs' Best Tech Stocks for 2011.
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