Ariba (ARBA)

Company

ARBA 2-month chart ARBA 2-month chart

"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 6-month chart
ARBA 6-month chart

Buy

Although there is some deterioration in the chart (lower highs), I believe the disappointment that followed ARBA's earnings report has run its course, so I added another half lot to my position.

  • Price momentum (PPO) — picking up after a post-earnings decline
  • Trend (ADX) — just below the threshhold (20), and buying pressure (+DI) has ticked up
  • Relative strength (RSI) — back up to neutral after a decline
  • Volume — yesterday's move was on solid volume

Based on technical analysis, MarketEdge calls ARBA an "avoid" in a "weak downward trend." I'm betting they're wrong.

Sell

gain Bottom line
4%

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