Aruba Networks, Inc. (NASDAQ: ARUN)

Aruba Networks, Inc. provides network access solutions for the mobile enterprises worldwide. It offers ArubaOS, an operating system software for wired, wireless, and remote access products for integrating user-based security, application-aware radio-frequency services, and wireless local area network (LAN) access to deliver mobile networking solutions, as well as provides various software modules for ArubaOS. The company also offers Mobility Controllers, which provides context-aware networking across wireless and wired LANs, virtual private network (VPN) connections, and remote offices; ClearPass Access Management System for bring your own device provisioning and onboarding, as well as for IT-issued and personal mobile devices to connect to any network; Aruba Instant, a controller-less Wi-Fi solution; AirWave, a multivendor network management software that manages radio frequency (RF) environment, controllers, wired infrastructure, and access points; and Access Points, which offers integrated RF management, intrusion prevention, and support for maximum client density of smartphones and tablets.

Please take a look at the 1-year chart of ARUN (Aruba Networks, Inc.) below with my added notations:

1-year chart of ARUN (Aruba Networks, Inc.)

In contrast to the overall stock market, ARUN has had a rough slide since March. After a couple of large gaps lower in May though, the stock has slowly started to rebound and is fast approaching $18. The level (navy) is key to ARUN because it was both support back in October and November, and it was also resistance in May after the 2nd gap lower.

The Tale of the Tape: ARUN is approaching a key level at $18. A trader could enter a short position at $18 with a stop placed above that level. If the stock were to break back above that $18 resistance a long position would be recommended instead.

Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT