Akamai Reversal Soon?

Published on Thursday, 26 January 2012 21:51 Written by Christopher Lynn

New York, January 26th (TradersHuddle.com) - Shares of Akamai Technologies, Inc. (NASDAQ:AKAM) ended the trading session lower by $0.44 or -1.38% from its previous close. Akamai's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

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 current stock range is defined by calculated support defined at $31.01 and by the resistance level at $34.24, which should be used by traders planning their trades.

Traders wanting to establish a position in Akamai stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Akamai shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: