ARUN - Aruba Networks Inc

ARUN is a $1.34 billion technology company that provides an enterprise mobility solution that enables secure access to data, voice, and video applications across wireless and wireline enterprise networks in the United States and internationally. Technically, ARUN has been a super relative performer, far outpacing the S&P 500. The strength in price has been supported by heavy volume, indicative of accumulation. On its recent breakout above $14.25, ARUN ran to $15.70, but in the process became very overbought with an RSI reading of 70 and stochastics in the mid 90s. Over the past few days, the overbought conditions have been alleviated somewhat as ARUN has fallen back to test its 20 day EMA, generally a nice support area for stocks with strong MACDs. On its latest high in price, ARUN also printed a higher MACD, suggesting there's still positive momentum accompanying the stock. We'd look for another test of $15.70 to the upside while monitoring the 20 day EMA as key closing support.