In his first Executive Decision segment of Tuesday's "Mad Money" program, Jim Cramer spoke with Tom Leighton, co-founder and CEO of Akamai Technologies (AKAM) , a provider of content delivery network services.
Leighton said while content delivery continues to grow on the heels of the growth in streaming media services, Akamai's security services are among its fastest growing. Security now accounts for 29% of Akamai's sales.
When asked about the many recent cyber attacks, Leighton noted that the federal government can help a lot by setting standards and protocols for handling ransomware, ensuring that information can be shared quickly and increasing the likelihood the bad guys will be caught.
In this daily bar chart of AKAM, below, we can see that when AKAM did cross above $110 it rallied to $125 before quickly reversing to the downside. Prices made a very brief new low in March before staging a fresh advance. Prices are trading above the rising 50-day moving average line and the rising 200-day line. Last month we can see a bullish golden cross of these two averages. The On-Balance-Volume (OBV) line has moved higher from early March to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line, but the two moving averages that make up this indicator are on top of each other.
In this weekly Japanese candlestick chart of AKAM, below, we can see that prices have broken out on the upside of a sideways consolidation pattern going back to early 2020. The range is bounded by $95 on the downside and $115 on the upside. Prices are above the rising 40-week moving average line. The weekly OBV line has been strong and confirms the price gains with its own move to a new high. The MACD oscillator crossed above the zero line last month for an outright buy signal.
In this daily Point and Figure chart of AKAM, below, we can see that prices have met an upside price target in the $116 area.
In this first weekly Point and Figure chart of AKAM, below, we used a five-box reversal filter and high/low prices. Here a $177 price target is projected.
In this second weekly Point and Figure chart of AKAM, below, we use close-only prices. Here we see a potential price target in the $210 area.
Bottom line strategy: Traders could go long AKAM on a dip to $115 if available. Risk to $109. The $177 area is our first upside price objective.