Akamai Upside Looming?

Published on Thursday, 19 August 2010 18:21 Written by TradersHuddle Staff

New York, August 19th (TradersHuddle.com) - Shares of Akamai Technologies, Inc. (NASDAQ:AKAM) ended the trading session higher by $0.96 or 2.18% from its previous close. Akamai's price action formed what is considered to be a bullish engulfing candle that could very well signal continuation of trend or reversal on ongoing weakness.

Akamai Technologies, Inc. (NASDAQ:AKAM) provides global delivery services for Internet content, streaming media, and applications and global Internet traffic management. The Company uses technology and software to offer tools that provide reporting and management capabilities; network data feeds and Website analytics, which provide customers with real time data about the performance of their content and applications over the Internet.

Akamai's recent stock range has been formed by a trough where calculated support was defined at $36.69 and by a peak that established the resistance level at $44.72, which could be used by traders planning their trades.

Traders wanting to establish a position in Akamai or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk as it shows where the bears were able to push the stock down, before the bulls stepped in.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration: