Trading Idea - Is Akamai close to Support?

Published on Monday, 23 January 2012 09:40 Written by TradersHuddle Staff

New York, January 23rd (TradersHuddle.com) - Shares of Akamai Technologies, Inc. (NASDAQ:AKAM) finished near calculated support at $31.82.

Current price action with, the provider of delivery services for streaming media closed at $32.04 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.

Akamai's current stock range is defined by current calculated support defined at $31.82 and by the resistance level at $34.24.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay close attention to Akamai's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $34.24 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.