Akamai Technologies (AKAM) has been falling under the weight of selling pressure the past four months and today's downgrade by TheStreet's quantitative service only makes the bear more agitated.
Let's keep this downgrade in mind as we look at our updated charts and indicators.
In this daily bar chart of AKAM, above, we can see how prices have been sinking since early February, breaking below the declining 50-day moving average line and below the cresting 200-day moving average line. We can also see a dead cross of the 50-day and 200-day averages in early May. That period also gives us a big gap to the downside and carryover selling. Prices have broken the late July/early August lows.
The On-Balance-Volume (OBV) line broke to the downside in late March and puts the chart in a bearish light as selling has become more aggressive. The Moving Average Convergence Divergence (MACD) has been below the zero line since early February and its recent cross from below the zero line is only a cover-shorts buy signal.
In this weekly bar chart of AKAM, above, we can see prices have broken hard below the declining 40-week moving average line. The weekly OBV line peaked in January and its decline suggests strong selling and liquidation. The weekly MACD oscillator is in a sell mode below the zero line.
In this Point and Figure chart of AKAM, above, we can see downside breakouts at $57.49 and at $51.53. With no stabilization or accumulation visible on this chart, we can only anticipate further price weakness for AKAM.
Bottom line: 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.
