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What happened to Thursday's gains\?

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When some of the old favorites like Ciena, Novellus, and Juniper Networks took off last week, everybody wanted to get back on the bull train. Lets see what impact today's selling is having.

Ciena Corporation Daily and 60-minute Chart

Last week Ciena (CIEN) gained 12.5 points in 4 days. Today prices are down 3.22. Looking at the 60-minute chart shows that Ciena should find some support around the 200-period moving average. The next level of support should be the 38.2% retracement bracket, and price congestion around $47.50. Long- term resistance for Ciena should be around 61.

Novellus Systems

Novellus (NVLS) had a similar run, gaining about 14 points in four days. Today prices are only down 0.33. Looking at the daily chart for Novellus is, well ugly. If you like violent price swings, NVLS is your huckleberry. The 60-minute chart shows that any sell offs could find some support at $46. After that, the $43.50 area should offer some support.

Juniper Networks

Juniper looks pretty much the same. Prices failed to break a long-standing downtrend, and are off 0.88 on the day. Prices should initially find support around $46, and then $42.50. I'm neither bearish nor bullish on these stocks, but I am encouraged by the general lack of selling.

Jeffrey Canavan
Assistant Analyst

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