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