I want to share with you a few reasons I feel Juniper Networks, Inc. (JNPR) offers a solid entry for a short position. First let me state that the market is extremely strong at the moment, and being short this market is risky. After I briefly explain this set up, it's up to you to decide whether it's worth the risk.

JNPR began a reversal on August 11. The stock has been uptrending ever since. Now we have reached a level of interest that is most definitely worth noting. The stock is just under 17.45, a level at which the stock faces support turned resistance as well as previous resistance. What further solidifies this price level is the fact that it touches the 200-day moving average, a level at which JNPR will also face resistance. Combine these two technical elements with the fact that RSI is approximately 75, indicating the stock is over bought and due for some selling pressure, and this looks like an optimal short entry to me.

A stop just above 18, let's say 18.11, gives this trade a risk factor of a little over 5%. I would watch for a move to 14.50 before covering in the event JNPR's technicals prove me right and the stock moves lower. Watch support at 16 and 15 on the way down.

Andy Swan is co-founder and head trader for DaytradeTeam.com.  To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.