AKAM dominated by bulls lifting the market higher throughout the day
Akamai Technologies Inc. (AKAM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
AKAM finished the month 1.22% higher at 107.09 after gaining $2.10 (2.0%) today, slightly outperforming the S&P 500 (1.54%). Today's close at 107.09 marks the highest recorded closing price since July 24, 2000. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 105.71, the market confirmed its breakout through the previous session high after trading up to $1.81 above it intraday.
Daily Candlestick Chart (AKAM as at Jun 30, 2020):
Tuesday's trading range has been $2.38 (2.26%), that's below the last trading month's daily average range of $2.88. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AKAM.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 10th, AKAM lost -3.25% on the following trading day.
Buyers managed to take out the key technical resistance level at 106.46 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since June 1st, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 102.08 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 108.25, upside momentum might speed up should the share be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Akamai Technologies. Out of 225 times, AKAM closed higher 52.00% 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 59.11% with an average market move of 0.96%.