AKAM pushes through Thursday's high
Akamai Technologies Inc. (AKAM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AKAM finished the month 5.0% higher at 112.44 after gaining $1.94 (1.76%) today, outperforming the S&P 500 (0.77%). Trading up to $0.96 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 Thursday's high at 111.36, Akamai Technologies confirmed its breakout through the prior session high after trading up to $1.08 above it intraday.
Daily Candlestick Chart (AKAM as at Jul 31, 2020):
Friday's trading range has been $2.23 (2.01%), that's below the last trading month's daily average range of $2.89. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for AKAM.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 110.21 earlier during the day, the market bounced off the key technical support level at 110.32 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on July 24th, AKAM gained 2.60% on the following trading day.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 115.08 where further buy stops might get triggered. With prices trading close to this year's high at 116.39, upside momentum could accelerate should AKAM be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Akamai Technologies. Out of 788 times, AKAM closed higher 53.93% 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 56.47% with an average market move of 0.84%.