AKAM Stock Pick: Continuation Patterns in 2011 Chart

akam-stock-monthly-chartAkamai Technologies Inc. saw their AKAM stock price gain 4.31% yesterday in the US stock market. I wanted to write about this foreseen rise and why AKAM would have been one of my favorite stock picks this month, but [intlink id=”1259″ type=”post”]events in online poker industry[/intlink] got me first. The monthly chart of AKAM stock had formed a nice doji candlestick during March right at the 20-month moving average, after a 3-month retracement since the last highest high at $54.65. AKAM stock has been trending upwards and has climbed from $10 per share (November 2008) to almost $55 in 2 years’ time. With about 10 working days left in April, this month’s candlestick may be proven a great completion in the continuation pattern.

AKAM stock has found support at the most recent resistance level during 2007-2008 downtrend, adding more confidence in our trading. However one can argue that the stock graph has formed a Fail Top in the end of 2010, which could mean the uptrend has come to an end. While that may be quite likely, there’s still a good chance the stock price to try reaching again for that high. It may fail once again and it might enter into a consolidation phase by moving sideways. Why don’t we try to take advantage by this predicted movement? The odds for moving upwards to $50 are considerably higher than breaking the support level of $35 in my opinion. Utilizing the weekly and daily stock charts a position trader is able to identify better entry and exit points to make the best out of this stock pick.