Is Akamai Breaking Out?

Published on Thursday, 05 July 2012 08:24 Written by TradersHuddle Wire

New York, July 5th (TradersHuddle.com) - Shares of Akamai Technologies, Inc. (NASDAQ:AKAM) closed the session at $32.16 just above calculated resistance at $32.00. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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.

The stock was trading in a well defined range with support at $29.88 and resistance at $32.00. Given that this range was broken, traders will be closely monitoring Akamai's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Akamai is still near the broken resistance level, traders will be focusing on the $32.00 level to see if the stock holds the breakout without rolling over.