Akamai Technologies Continues to Climb to New Heights

A fresh look at AKAM's charts is in order.

When we last reviewed Akamai Technologies Inc. (AKAM)  on August 21 we wrote that, "Patient traders could probe the long side of AKAM in the $110-$105 range risking a close below $100. On the upside we look for future gains to the $147 area."

Traders do not have to be all that patient as prices have rallied to reach a new high and a fresh look at the charts is in order. 

In the updated daily bar chart of AKAM, below, we can see that prices have moved up to new highs. Prices are trading above the rising 50-day moving average line. The slower-to-react 200-day moving average line is rising and was last tested in the March selloff.

The On-Balance-Volume (OBV) line is rising and is close to making a new high to confirm the new price highs. The Moving Average Convergence Divergence (MACD) oscillator has turned up to a fresh outright go long signal.

 

In the weekly bar chart of AKAM, below, we can see a durable uptrend. Prices are above the rising 40-week moving average line.

 

The weekly OBV line has been constructive for the past three years and the MACD oscillator is in a bullish alignment above the zero line. 

 

 

In this Point and Figure chart of AKAM, below, we can see the recent upside breakout and a price target of $140. 

 

 

 

Bottom-line strategy: Continue to hold previously recommended long positions. Raise sell stop protection to a close below $106 and look for gains to the $140 area.

 

Employees of TheStreet are prohibited from trading individual securities.