by Sam Collins | February 9, 2012 2:15 am
Akamai Technologies (NASDAQ:AKAM) — The last time I reviewed this developer of solutions designed to accelerate and improve the delivery of internet content was on Oct. 31, 2011. I said, “Technically the stock has broken above a significant resistance line at $25 on a break-away-gap, a very bullish sign. Traders will want to jump on AKAM for a quick pop to its 200-day moving average at $32.”
The “pop” to $32 occurred in late December, and shortly after that the stock flashed a Golden Cross, confirming that a longer-term move was possible.
Yesterday, AKAM reported fourth-quarter earnings of 45 cents per share, trouncing analysts’ estimates of 40 cents, and revenues were up 15%, well ahead of Street estimates. The stock sold north of $37 in after-hours trading yesterday. Longer-term investors may wish to hang onto their AKAM shares, but traders should recognize the pocket of resistance at $35 to $43 and the open gap at $35.50 to $40. These gaps, when associated with resistance zones, often are areas to target for profit-taking. A pop this morning into that zone might reward the seller with a pullback into the low $30s and another opportunity to buy.
Source URL: http://investorplace.com/2012/02/trade-of-the-day-akamai-technologies-akam-tech-stocks/
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