AKAM breaks below Thursday's low
Akamai Technologies Inc. (AKAM) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
AKAM ended the week -1.14% lower at 70.94 after losing $1.24 (-1.72%) today, underperforming the S&P 500 (-0.92%). Closing below Thursday's low at 71.20, Akamai Technologies confirmed its breakout through the previous session low after trading up to $1.21 below it intraday.
Daily Candlestick Chart (AKAM as at Nov 09, 2018):
Friday's trading range has been $2.01 (2.79%), that's slightly above the last trading month's daily average range of $1.92. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AKAM.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, AKAM actually gained 1.28% on the following trading day.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 72.55 where further buy stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Akamai Technologies. Out of 392 times, AKAM closed higher 53.57% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.12% with an average market move of 1.74%.