Akamai Technologies: AKAM 20% Break-Out Play

AKAM has recently been flagged as a buy,on my discretionary short-run trading system. What we see here is a very profitable application's software company, that runs a very efficient corporate operation. they have an amazingly strong balance sheet, with little to no debt , and do much of their work directly with Apple, as we all know, just had a valuation raise to $560 a share.

AKAM being one of the more profitable companies in the computer service industry has a great pre-break-out chart set up as well, lets take a look.

Above we have the following.

• Stochastic Over-Sold Crossing Signal.
• Momentum turning towards a reversal across the 100 line, which is the confirmation to buy.
• A reliable Ascending Triangle Chart Pattern.

Bollinger Analysis

• We can also see here from our Bollinger Analysis is that the bands have contracted, indicating that a breakout, either being up or down is due here relatively soon, and since AKAM is in a consolidating oscillating range, using oscillators is the best way to determine if it is under or over priced.
• Based off of the evidence the indicatoror's suggest that both Bollinger %B and CCI as well as Stochastic & Momentum indactors show that AKAM is oversold greatly.
• Evidence also suggests AKAM is poised to break-out upwards

All in all, what we have is a financially strong, profitable company, that based off of Technical Analysis is greatly oversold and is poised to climb to a solid $40.00 in the next 3 weeks.

Position: Strong Buy

Target Price: $40.50-$41.00

Pacific Ethanol Corporation PEIX : Ascending Trinagle Breakout

PEIX is candidate for a easy 15-20% gain. The ethanol producer (being on of the largest producer/distributors on North America) has been trading in a tight consolidation range of an ascending triangle for several days now with declining volume.

• Ascending Triangle formation, meeting textbook parameters, this chart pattern in a smoking gun for a bullish-reversal due any day now.
• Declining volume, also goes in par with further confirmation of the ascending triangles up coming bullish movement.

• Contracted Bollinger Bands also show a movement in price action will occur any day now.
• Momentum indicator is hugging 100 line, showing the current consolidation in progress as well

Overall PEIX has to move and sometime soon, as we have seen volume gradually fall lower and lower well below the 50-day moving average (of volume) its safe to say we should see a break upwards come Monday or Tuesday, Wednesday at the latest.

I predict we will see the triangle formation broken upwards tomorrow, and the run should be to $1.45-1.50 range.

PEIX: Strong Buy

Price Target: $1.45