Akamai Is Close to Resistance
Published on Thursday, 31 January 2013 07:40 Written by TradersHuddle Wire
New York, January 31st (TradersHuddle.com) - Shares of Akamai Technologies, Inc. (NASDAQ:AKAM) are trading very close to calculated resistance at $41.49. The stock ended the trading session at just $40.40, which is near levels that make it difficult to buy or start a position.
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 stock range is defined by its calculated support defined at $39.00 and by the resistance level at $41.49; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.
Traders don't have a clear entry point for Akamai. However, as the stock pulls back towards $39.00 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $41.49 then traders will get an opportunity to enter the stock as it moves to a higher range.