Akamai ( $AKAM ) is going higher

Akamai Technologies ( $AKAM ) is in the Networking Group within the Technology Sector. It is breaking out on both the Daily and Weekly time frames.  Relative performance of the Stock versus SPY and its Peers has been excellent. I believe its going higher.

The Set up
In looking at the Daily Chart below, we see the stock has been taking a break over the past month in consolidation mode. Today Price is moving above the range with a strong move. Technicals also look good. The RSI indicator in the top panel is breaking above trend resistance and the PPO momentum indicator in the second panel is in the process of a bull cross.  Options order flow is bullish with Calls outpacing puts 4:1

Annotated Daily Chart of $AKAM: http://schrts.co/rXDnM2

The Weekly chart below also looks bullish to my eye. Price is breaking out of the prior range and RSI is moving into the power zone.

Annotated Weekly Chart:  http://schrts.co/XDXFic

The Trade

I like $AKAM long above $77.  My T1 is $85 where I’d expect some hesitation, but over time my T2 target is $88-$90.  I like the AKAM Jul $80 Calls for around $2.50-$2.55 midpoint with the stock at $79.15.  Use limit orders and be patient but dont let a few cents keep you out of the trade. Might be tough to get a midpoint fill on a strong day.

Note: $AKAM earnings is due out after July expiration so there isnt any immediate earnings risk.

Good Luck and Happy Trading!!

Spread the word?

Facebook
Twitter
LinkedIn
Pinterest

Leave a Reply

Your email address will not be published. Required fields are marked *

Let's do this.

Subscribe to the Daily Profit Compass now. It’s 100% FREE.

Website powered by RapidWebLaunch