AKAM dominated by bears dragging the market lower throughout the day
Akamai Technologies Inc. (AKAM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AKAM finished Wednesday at 107.07 losing $1.79 (-1.64%) on low volume, significantly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 108.31, the market confirmed its breakout through the previous session low after trading up to $1.44 below it intraday.
Daily Candlestick Chart (AKAM as at Sep 16, 2020):
Wednesday's trading range has been $2.78 (2.54%), that's slightly below the last trading month's daily average range of $2.84. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently 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 September 10th, AKAM actually gained 0.14% on the following trading day.
Prices are trading close to the key technical support level at 105.92 (S1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might speed up should prices move below the nearby swing low at 105.59 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Akamai Technologies. Out of 530 times, AKAM closed higher 53.77% 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 54.72% with an average market move of 0.69%.