03/01/01 Ariba Inc (ARBA)
Points to watch:
Ariba has been on a steady downward
spiral, losing over 90% of its value, since forming a double top on its
daily chart in September at 173.50 (9/5)-173.00 (9/25). The stock
also made a failed double top on its weekly chart (see below) in
September.
Yesterday, 2/28, the stock fell 0.75 to
close at 16.50, its lowest close ever, after hitting an all-time low of
16.19 intraday. The stock is now at a critical support level--the
16.55 level marked its previous low in 8/99.
Long term technical indicators remain
strongly negative, with Money Flow, MACD, OBV, Accumulation/Distribution
all making new lows and confirming the recent plunge.
Short, long, and intermediate term
trends remain down, and the stock is unlikely to disobey the laws of
gravity any time soon. A sell short signal would be given if the
stock fails to hold yesterday's low of 16.19, with the next downside
support another 20% drop away at 12.50-12.75.
