Ariba (ARBA)


"Ariba, Inc. is the leading provider of spend management solutions to help companies realize rapid and sustainable bottom line results. Successful companies around the world in every industry use Ariba Spend Management™ software and services." (company website)

ARBA 1-year chart


ARBA 2-month chart ARBA 2-month chart

Ariba has given up six-weeks worth of gains and has stabilized there, just above the lower Bollinger band and above the 50-day moving average. The uptrend is far from being tested, even after the market correction of 27-Feb. I decided to add another half lot to my position.

  • Price momentum (PPO) — picked up sharply after earnings (but taking a hit after the correction)
  • Trend (ADX) — still strong
  • Money flow (CMF) — basically neutral, although there was a recent strong inflow
  • Relative strength (RSI) — neutral
  • Volume — up sharply since earnings

Based on technical analysis, MarketEdge calls ARBA a "buy" in a "strong upward trend."

loss Bottom line

Ariba enjoyed a small rally today, so I took advantage of the opportunity to close out my last two positions with a slight loss on this lot and a slight profit overall. I bet that MarketEdge was wrong about the downward trend; it now seems pretty clear that I lost that bet.

At the time I bought this lot, a strong uptrend was in place, but by the end of April the trend was over. I stubbornly held on too long. The Market saw something in Ariba's earnings report that I didn't see, and the stock took a hit. Although the 200-day moving average is still rising, and ARBA has apparently passed a test of that level of support, it has not been able to break above the 50-day moving average and stay there. So, I bailed out while I could still essentially break-even.