Trading Akamai? Look for a Buyable Dip

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New York, Aug 27th (TradersHuddle.com) – Shares of Akamai Technologies (NASDAQ:AKAM) closed the trading session lower after an intraday reversal at $46.42 or 0.85% lower than Wednesday’s close. Akamai failed to reach 52 week high territory as it only reached a high of $47.88 before reversing intraday.

Akamai Technologies provides services for accelerating and improving the delivery of content and applications over the Internet, ranging from live and on-demand streaming video capabilities to conventional content on Websites, to tools that help people transact business and reach out to new and existing customers.

Akamai shares have been exhibiting relative strength for the past two months, as they have been outperforming the broad market index throughout the latest selling pressure, as you can see in the below chart Akamai stock price action has been able to maintain its July – August trend line intact.

Akamai stock actually had a breakout above its down trending resistance line, that so far is acting as support. This is why traders with interests in Akamai {module212}{reg} should keep in mind the $43 ~$44 area as significant support in case the stock pulls back after today’s reversal. Also, something very important to highlight is that the support area also coincides with the uptrend from July-August.

Another bullish development in the stock price action is the crossover of the 50 day exponential moving average above the 50 day simple moving average that sets the stock on a bullish configuration that makes the next dip to support a buyable dip.

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