I have Â a question post to me on my Watchlist page from Victor.
AKAM can go back 44?
My personal opinion is No.
And this is guided by 2 charts (or sentiments).
1. The general market is bullish now; SPX have break through of its kumo resistance (refer to my Sept 7 post on SPX)
2. From the Akamai (AKAM) Ichimoku chart above, we can see that AKAM is turning now (a little retracement) in a fairly strong bullish move above the kumo (above kumo represents bullish move).
– we can see the Tenkan sen (blue line) has risen at a pretty sharp angle and is now tappering off ; reflecting the price is going to consolidate
– the RSI is near overbought conditions, so we do expect price to consolidate but not drop too much
3. From the Chikou Span, I have drawn 2 horizontal lines to identify the nearest 2 support levels. ($48 and $45)
In my opinion, the $45 level is a pretty strong support level as it has previously attempted twice to break through it before finally succeeding.
We can also see that the leading kumo is suggesting a support level at around $46 – $47
So, unless the general market turns down due to other news, I do not foresee AKAM to hit $44 in the near term.
What do you think?