Yesterday was back and forth all day long, but in the end, the day was essentially a tie. The S&P 500 ended the day down a modest 0.08%, right in the middle of the day’s trading range, with investors unsure what to think about the Mueller report.
Apple (NASDAQ:AAPL) was one of the biggest drags, with shares falling 1.2% after investors found the unveiling of its new Apple TV+ platform fell a bit flat. Roku (NASDAQ:ROKU) was at the other end of the spectrum, rallying 4.7% once the market realized Apple TV+ wasn’t going to upend the current leader of the streaming set-top box market.
Neither are looking like compelling prospects headed into today’s trading action, however. Rather, it’s stock charts of Juniper Networks (NYSE:JNPR), Franklin Resources (NYSE:BEN) and Lennar Corporation (NYSE:LEN) that are of the most interest. Here’s why, and what has to happen next.
Lennar Corporation (LEN)
A month ago, Lennar shares worked their way above their 200-day moving average line against a backdrop of hope that the home-construction market would rebound before slipping into deep trouble. That effort faded just as quickly, with Lennar stock sliding back below the 200-day line just as quickly as it crossed above it.
As of yesterday, however, the stock is back above that all-important moving average, and it has made that move in such a way that suggests there’s more upside left to go if one major hurdle can be cleared.
Click to Enlarge • The renewal of the uptrend took shape on the 20th, highlighted on the daily chart. The open and close near the high for the day and a long-tailed low suggests a transition from a net-selling back into a net-buying environment.
• Bolstering the bullish case is how bullish volume has been growing on the way back above the white 200-day moving average line.
• Although the momentum is impressive, the $50.50 area has proven to be a major ceiling. Shares peaked there last month, and there’s also a key Fibonacci retracement line at that mark. It will be tough to clear, but if it is hurdled, it could also serve as a bullish catalyst.
Juniper Networks (JNPR)
Juniper Networks has been trending lower since peaking in October, bucking the marketwide trend that has carried most stocks higher during that period. But, JNPR stock hasn’t yet moved past the point of no return. It’s getting close though, and continues to trend in that direction.
The good (if not great) news is, the lines in the sand are well-established and crystal clear.
Click to Enlarge • One of those lines is horizontal support around $25, marked with a yellow line on the daily chart. The stock bottomed there a couple of times since July.
• On the weekly chart, the key support level is the technical support line that tags all the major lows going back to 2014. It’s plotted in blue, and currently a little bit above $25.
• Though JNPR stock has reliably found support for years, this instance is different than previous ones. Juniper hasn’t made a higher major high since 2015’s peak.
Franklin Resources (BEN)
With nothing more than a quick glance at the past few weeks, Franklin Resources looks like little more than a volatile mess. And, maybe that’s all it is. Take a step back and look at BEN from a bigger-picture perspective, however, and it looks as if the stock has been quietly working its way out of a downtrend and into an uptrend.
There’s one more move that has to be made before the deal is sealed.
Click to Enlarge • As of Monday, the purple 50-day moving average line has crossed above the white 200-day moving average line. This so-called “golden cross” is generally a precursor to a new longer-term uptrend.
• The budding uptrend has found support at key moving average lines on the way up. Both instances are highlighted on the daily chart.
• On the weekly chart we can see the turnaround was ultimately rooted in support around $28, plotted with a purple line on the weekly chart.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley.