During the fast-paced Lightning Round segment of the Mad Money callers get to quiz Jim Cramer about stocks they are interested in. Thursday night one caller asked about Limelight Networks (LLNW) . "If you want that group, you want Akamai Technologies (AKAM) ," said Cramer.
Let's check out the charts and indicators of AKAM.
In the daily bar chart of AKAM, below, we can see that the shares have worked higher from their Covid-19 price low in March. AKAM has traded sideways the past three months but that stalemate may not last much longer. Prices have traded around the now declining 50-day moving average line. The slower-to-react 200-day moving average line has a positive slope and intersects down near $100.
The trading volume has diminished during this largely sideways period and that is not unusual. The On-Balance-Volume (OBV) line, however, shows a rise from June and that tells us that buyers of AKAM have been more aggressive the past few months. The Moving Average Convergence Divergence (MACD) oscillator has been hugging the zero line lately. A turn to the upside would be welcomed.
In the weekly bar chart of AKAM, below, we see a generally positive picture. Prices are in a longer-term uptrend. The slope of the 40-week moving average line is positive.
The weekly OBV line shows a longer-term rise but has been mostly flat the past three months. The MACD oscillator is above the zero line but in a take profits sell mode now.
In this daily Point and Figure chart of AKAM, below, we can see that the price jiggles are projecting a downside price target of $103. A rally to $113.10 is likely to improve the picture.
In this weekly close-only Point and Figure chart of AKAM, below, we can see a potential $146 price objective.
Bottom-line strategy: Traders should approach AKAM from the long side risking a close below $105. Add to longs above $115. The $146-$150 area is our price target.
