Tuesday, February 15, 2011

AKAM - a flag to breakout

Akamai Technologies, Inc. provides services for the delivery of content and business processes over the Internet for businesses, government agencies, and other enterprises. It offers services and solutions for content and application delivery, application performance services, on demand managed services, and business performance management services based on its technological platform, EdgePlatform.

AKAM @ Yahoo Finance | AKAM Option @ Yahoo Finance

AKAM issued earnings on 2/10 and got hammered. The daily chart explained why I bet on the low side on ER.


 
In the past couple days, it is crawling up, on Ericsson (ERIC) news and probably also because of Cramer's pump.
I, however, don't buy it. I see a potential bearish flag forming. The setup will become active on a breakdown below the bottom of the pattern at $41.88. If the pattern becomes active, downside potential for the pattern is to the $36.5 area, then possibly $30.

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