Approaching Resistance - Akamai

Published on Thursday, 18 March 2010 08:33 Written by TradersHuddle Staff

New York, March 18th (TradersHuddle.com) - Shares of Akamai Technologies, Inc. (NASDAQ:AKAM) are trading very close to calculated resistance at $32.23 with the current price action closing at just $32.08 placing the stock near levels that make it difficult to buy.

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 current calculated support defined at $24.64 and by the resistance level at $32.23, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Akamai, as the stock is well above support, however, as the stock pulls back towards $24.64 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $32.23 then traders will get an opportunity to enter Akamai stock by establishing a position as the stock moves to a higher range.