This price level is where ARUN needs to move up, I think 22 has been a battle ground break it and shorts will start to give up and lose control of this stock. Im a buyer again with a slow change of heart by analyst to the positive side
This week has been anything but "slow and steady" for ARUN! Up $1.65 or 8.1%. The fly in the ointment is that it was on a highly contracted volume of 30% below normal for the week.
In any event, this was a great week for the stock.
For the past few days, ARUN has been getting some buys close to the closing bell. This smells like accumulation to me. If you search the NASDAQ, you'll be able to find how many of the shares have been block trades.
The current pattern [the handle] closely resembles a cup and handle...but it isn't The problem is that the handle is poorly formed. From December 13th to the 28th the handle should have been forming lows on low volume around $19.50 or so. Instead, it went the other way and began forming highs on low volume.
Can ARUN still break out? Sure it can! It could go to the mid-$22 range, perhaps a bit higher.
In the event that it does, I would sell into any rally to that point of resistance. Reason? ARUN just isn't showing the necessary horsepower yet.