AKAM Less Than 50 Cents From a Breakout Buy Signal

Akamai Technologies (AKAM) — This big-cap technology company’s distributed computing platform handles one-third of all Internet traffic.

On Friday, analysts at UBS (UBS) initiated coverage with a “buy” rating and $70 price target. They expect earnings per share of $2.85 in 2015, up from a consensus estimate of $2.35 for 2014.

The company has said it plans to achieve $5 billion in revenue by 2020, compared with an estimate of just under $2 billion in 2014.

Technically the stock has several powerful indicators going for it. It is at the top of an ascending triangle with a breakout point at $62.50, less than $0.50 from Wednesday’s close. And within the apex of the triangle is a reverse head-and-shoulders with its neckline also at $62.50. Support is at the 50-day moving average at $59.73.

A break above the neckline gives a trading objective of $68. Buy AKAM at the market.

AKAM Chart
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Article printed from InvestorPlace Media, https://investorplace.com/2014/09/trade-day-akamai-technologies-akam/.

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