AKAM breaks back above 100-day moving average
Akamai Technologies Inc. (AKAM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AKAM ended Thursday at 94.38 gaining $5.03 (5.63%), underperforming the S&P 500 (6.24%). Trading up to $3.28 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 93.78, the market confirmed its breakout through the previous session high after trading up to $1.02 above it intraday.
Daily Candlestick Chart (AKAM as at Mar 26, 2020):
Thursday's trading range has been $8.06 (8.95%), that's above the last trading month's daily average range of $6.32. 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.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Akamai Technologies managed to close back above the 100-day moving average at 90.02. Prices are trading close to the key technical resistance level at 95.88 (R1). After having been unable to move above 93.78 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 94.80. The last time this happened on March 19th, AKAM lost -7.29% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 98.26 where further buy stops might get triggered. With prices trading close to this year's high at 103.34, upside momentum could speed up should AKAM be able to break out to new highs for the year.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Akamai Technologies. Out of 5 times, AKAM closed lower 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after eight trading days, showing a win rate of 80.00% with an average market move of -1.15%.