Akamai Technologies is moving well today. Shares are up over 3.5% placing it in the top five of the SP 500 gainers list. This powerful move has driven the stock to new December highs. We believe AKAM is setting up well for a fresh rally leg.
Back on Oct. 28th AKAM suffered a nasty post earnings(https://www.investing.com/news/akamai-earnings-revenue-beat-in-q3-2334467) flush. Shares closed the session down over 8% on very heavy trade. The stock bottomed in early November before spending the next eight weeks recovering. In late December the post earnings breakdown gap($105.70) was filled but further upside was limited. AKAM faded off the late December highs but appears to have regained its footing as this week comes to an end.
A key upside hurdle for AKAM is the $109.00 area. The stock will have put some distance on a key overhead trendline that links the September/October/December highs once the December peak is cleared. On the downside, a close back below $100.00 would violate this week’s low indicating more directionless trade is ahead.