Cisco Systems, Inc. (CSCO), Aruba Networks, Inc. (ARUN): This Small Cap Is Primed For A 24% Breakout

It’s important to note that despite the disappointing third-quarter results, gross margins remain strong and the company continues to operate effectively within its niche. So far, the stock price has agreed with my opinion.

The pullback has enabled savvy investors to buy on the bounce from the lows for almost 30% gains so far.

Risks to Consider: Despite my bullishness on the company and skepticism about the class-action lawsuit, anything can happen — in the stock market and the courtroom alike. Always use stops and position size properly when investing.

Action to Take –>

— Buy ARUN on a break above its 50-day simple moving average at $16.45

— Set stop-loss at $15

— Set initial price target at $20.45 for a potential 24% gain in 12 months

This article was originally published at ProfitableTrading.com
Beaten-Down Small Cap Looks Poised for a Powerful Breakout

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