From IBD for those that add technicals to fundamentals:
Arista Networks (ANET) is acting like a true market leader and remains just 2% off its high.
The provider of software-driven cloud networking solutions has increased its market share of its high-speed data-center switching ports to 14.9% as of Q3 2016, according to Crehan Research.
The stock has performed well this year. Since breaking out of it first base in August, the stock has risen 28% from that entry.
In mid-December, a court ruled that Arista Networks owed no damages over Cisco’s (CSCO) claim of copyright infringement. Cisco had been seeking roughly $335 million in damages. However, litigation continues as an International Trade Commission judge ruled Dec. 2 that Arista infringed on two Cisco patents.
After breaking out of a flat base in mid-November, the stock has moved up nicely, about 13% from its 87.72 buy point, so it hasn’t triggered a profit-taking sell rule yet.
Now, Arista Networks has built an add-on entry for investors with a profit cushion. A three-weeks-tight, especially when the market is correcting, is particularly constructive. Despite the market weakness, institutions are unwilling to part with their shares.
The add-on entry point at 99 is in play if the stock breaks above that level in high volume. Be mindful of your position’s cost basis if you add shares.
The volume has been encouraging as well. As the stock hits new highs, volume tends to be above average, but when the stock pulls back, the volume recedes.
The stock’s relative strength line has remained near highs during the recent market volatility.
Might be a place to transfer NVDA profits while we wait for that one to see if it will retrace to the 50dma and start a new base.