As part of my daily routine working for Jim Cramer and Real Money, I review the daily Alerts prepared by the company's quantitative service, Quant Ratings. I find the service a useful tool to alert me to changing situations that I may not have noticed on my own.
Today, Juniper Networks (JNPR) - Get Report was downgraded by TheStreet's quant service. After a stock gets my attention because of an upgrade or a downgrade I jump into action with my charts and indicators.
Looking at this daily of JNPR, below, we can see how the uptrend from July took a turn south this month. Earlier this month, JNPR closed below the rising 50-day moving average line. Prices have continued to weaken and are close to a test of the rising 200-day moving average. JNPR shows support around the $28 area, but a close below $27.50 is likely to break this support and weaken the chart further.
The daily On-Balance-Volume (OBV) line moved up until May and has been moving lower since. A declining OBV line is a sign that sellers of the stock have become more aggressive with heavier volume being traded on days when JNPR closes lower. The Moving Average Convergence Divergence (MACD) oscillator turned down below the zero line earlier this month for an outright sell signal.
In this weekly bar chart of JNPR, above, we can see that prices are testing the rising 40-week moving average line. The weekly OBV line has been retreating for the past two months and the weekly MACD oscillator is pointed down from a liquidate-longs sell signal.
In this Point and Figure chart of JNPR, above, we can see that a trade down to $27.53 puts the chart in a weakened state.
Bottom line: I don't know what the fundamental story says, but the charts and the quantitative downgrade point to lower prices in the weeks ahead. Best chart support is down around $24.
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