This Is Why You Should Pay Attention To Decreasing Volume
Juniper Networks (JNPR)
closed right at the 50-day EMA yesterday after pulling back from the
April 20 high. You can also see the 38.2% retracement level just below the EMA.
(Charts Courtesy of QCharts)
11:06:55 (from TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Buy |
JNPR | buy stop at 22.91 | pullback (near 38.2% level) |
22.76 | 23.05 | 22.87 |
TK |
Now let’s look at the 5-minute chart
from this morning.
JNPR made a nice run on the news JMP Securities upgraded the stock to buy from
market perform based on the company’s decision to acquire Peribit Networks.
After hitting 23.17, JNPR finally began to pull back. Shortly before 11:00, the
stock reached the 20-period EMA and the 38.2% retracement level. Notice this
pullback volume was decreasing. It was an indication of normal profit taking. I
placed a buy stop at 22.91.
11:30:31
Follow up on JNPR (Pt 3)
It has reached our target. Sell the rest, or adjust your stop.
If you have questions, feel free to
mail them to me.