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Aruba Networks Classic Cup and Handle

Long
BATS:ARUN   None
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1
Great company that deals with wireless and wire-line enterprise networks. Strong base pattern ( cup and handle ) that broke out today. Outlook/Goal - Buy: now, Sell: around 34.00.

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Reflection: Errors in my analysis.

1) The large cup and handle was not a true cup and handle, as the cup and handle is not a turning indicator but a bullish indicator. The price must increase before a cup and handle is formed for it to have a good success rate.

2) The second, smaller cup and handle was accurate. However, the measure rule for a cup and handle is target = (.5 (top of handle - bottom of cup)) + top of handle. Where the top of the handle is the buy point. As a result, the target price should have been at (.5*4) + 21.56 = $23.56, a price that was hit before the pattern broke its upward trend line (2013-02-20).
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