Monday, May 03, 2010

Akamai Technologies, inc (AKAM) Tests Major Resistance

Last week Akamai Technologies, inc (AKAM) gapped up significantly higher on heavy volume.  It's always good to look at the weekly and monthly charts to see the big picture whenever analyzing a stock. In the above weekly chart of Akamai Technologies, inc (AKAM) you can clearly see that this stock is now testing a very significant long-term resistance level which comes in around the 41 area.

Usually when a stock tests major resistance for the very first time especially after being in an accelerated overbought condition,  resistance tends to hold. Whether or not  Akamai  will move lower from these levels remains to be seen but if you happen to be long this stock, taking profits or at  least using a very tight trailing stop might be a good defensive trading strategy.

1 comment:

Sean said...

Just a shout out of thanks, Kevin, for sharing your market insights. I've been following you for a couple of years. Your insights are both timely and prescient.

Kudos and thank you!



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