A Bullish Strategy For Soaring Akamai

Akamai Technologies AKAM has come a long way since we looked at the charts back in May of last year, where I opined, "The price of AKAM might have a temporary bounce to $50-$55, but with the trend being down I would anticipate that new lows are in the cards for AKAM in the weeks ahead. The weekly bar chart suggests that we could retest the $45-$40 area in the weeks ahead." Looking at the weekly chart (second chart below) we can see that our forecast worked out nicely with prices bouncing up to the low $50s before touching $45 in July and August. The rally since July has been pretty impressive. Let's see if there is still more on the upside.

In this daily bar chart of AKAM, below, we can see that prices gapped to the upside in December and made a sideways consolidation pattern for a couple of months before resuming the uptrend. AKAM is above the rising 50-day moving average line and the rising 200-day line. The daily On-Balance-Volume (OBV) line has been in a slow uptrend since May and did not make a lower low in August when prices made a lower low. The Moving Average Convergence Divergence (MACD) oscillator gave a buy signal in early October when it moved above the zero line. The MACD has stayed above the zero line since October and turned bullish again in February with a fresh buy signal....104 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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