AAL

JUNO Stock Just Sent Up a Buy Signal

Juno Therapeutics tends to rally sharply after meeting up with its 40-day moving average

Managing Editor
Oct 19, 2017 at 2:24 PM
facebook X logo linkedin


Biopharmaceutical stock Juno Therapeutics Inc (NASDAQ:JUNO) has been moving primarily sideways on the charts in recent months, despite managing to hit twin peaks around the $47 level in September. However, the stock just met up with a key trendline that has had bullish implications in the past. If history repeats itself, JUNO stock could be screaming "buy" right now.

According to Schaeffer's Senior Quantitative Analyst Rocky White, the stock is now trading within one standard deviation of its 40-day moving average after a lengthy stint above this trendline. Following the last four pullbacks to this moving average, JUNO was up 9.5%, on average, one month later, and was higher 75% of the time. A similar 9.5% rally from the stock's current perch around $42.88 would place JUNO back in the neighborhood of those September highs.

Daily Chart of JUNO Since Jan 2017 with 40MA

However, it's worth noting that the very short-term returns after one of these 40-day signals are much less bullish. Five days after one of these signals, JUNO was higher only 50% of the time, and down nearly 3% on average. In other words, while the next few days could be volatile for JUNO, there's a higher-than-usual probability that the equity's consolidation into its key 40-day moving average will result in the stock trading comfortably higher a month from now.

Should JUNO stock continue its ascent, plenty of shorts could get squeezed. Short interest dropped more than 35% over the past two reporting periods, but still accounts for 15.6% of the stock's available float. A continuation of this short-covering activity could aid JUNO's latest bounce from its 40-day moving average.
 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.