Akamai Technologies (AKAM) has been trading sideways the past three months. Trading volume has decreased but prices have been making higher lows. AKAM is ready for an upside breakout. Let's look closer.
In this daily bar chart of AKAM, below, we can see a large ascending triangle formation. Prices have encountered selling resistance in the $105-$108 area with higher lows from March to July. Trading volume has diminished from May to July which is typical with a triangle pattern.
The On-Balance-Volume (OBV) line has been in a decline the past two months but the Moving Average Convergence Divergence (MACD) oscillator has just turned upwards from above the zero line for a buy signal.
In this weekly bar chart of AKAM, below, we can see a bullish picture the past three years. Prices have been in an uptrend and above the rising 40-week moving average line. The OBV line and the MACD oscillator are bullish.
In this daily Point and Figure chart of AKAM, below, we can see that a trade at $108.69 will be an upside breakout. The chart shows a price target of $122.
In this weekly Point and Figure chart of AKAM, below, we can see that a weekly trade at $108.68 will be an upside breakout and that should open the way to potential longer-term gains in the $172 area.
Bottom line strategy: The charts of AKAM look bullish and poised for an upside breakout. Traders could go long here risking a close below $100 for now. The $122 area is our first upside price objective.
