JUNIPER November 24 2000
There are those currently touting Juniper
as a "buy". Technicians would be more likely to short
it than buy it. Note the highest volume on the chart on the breakaway
downside gap November the 21st. The gap and bounce three days
later occurs on negligible volume and looks like short covering.
Bounces of this sort (which are known in the trade as 'dead cat
bounces') are often followed by further price erosion, especially
after plunges of such violence. Only the most adventurous (and
perhaps rashest) of speculators would buy at this point and his
stop would be the nearest low. The serious investor can find
other less risky situations. And if he is set on Juniper patience
is certainly in order until the downtrend has run its course.
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