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I know that I covered the chart of Juniper Networks in recent weeks. There were signs that bulls were carrying the risk in this one and today's earning's warning hints that "smart money" new long before today that there were still some clouds on the horizon for Juniper. I'm willing to bet (see recent bearish trade setup in Broadcom from $43) that there are some other charts out there where the stock achieved a bullish price objective and is starting to give some sell signals.

Juniper Networks Chart - $0.50 and $1 box

The point figure chart of Juniper (NASDAQ:JNPR) has been hinting that lower prices were ahead. The bullish vertical count from the bottom indicated a bullish price objective of $27.50. The point and figure chart shows the stock traded $27, but the bar chart does show the stock trading $27.84 at it peak of the recovery. In early November (red B) shares of Juniper did give a sell signal and the resulting column of O's set the stage for a bearish vertical count of $11. Will Juniper go "coast to coast" in the coming months? You can never be sure, but the buy signals off the bottom seemed to call the near-term top. It will be interesting to see if it can predict a bottom. All a trader has to do is trade the levels and monitor their risk.

Are you holding a stock long that has achieved a bullish price objective and it is starting to give sell signals? If so, put together an action plan where you're going to call it quits! If your a trader willing to short/put some tech stocks, the NASDAQ- 100 bullish percent is still "bear confirmed" at 65% bullish after having recently been "overbought" at 78%.

Jeff Bailey
Senior Market Technician
Option Investor

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