Today I am going to discuss Akamai Technologies (AKAM). AKAM has had a great recovery since the COVID Pandemic, reaching prices higher than pre-pandemic.
However, AKAM seems to be on the verge of a breakthrough. AKAM seems to represent a very familiar pattern in trading: Ascending Triangles.
An ascending triangle is a continuation pattern consisting of a horizontal line (representing the highs) and a rising trendline (representing the lows). Both of these lines form a triangle.
Generally the coming trend follows the trend that preceded the triangle. As AKAM was in an uptrend before, there is good reason that this uptrend will continue after the breakthrough.
The trend lines seem to indicate that we are coming close to the breakout point. However, it does not seem to be within this week, or maybe even the week after. There is still some time before the breakthrough.
However, now is a good time to long. AKAM is currently touching the lower trendline and historically has rebounded the past three times this happened (within the last three months).
Furthermore, if the triangle were to turn into a downtrend (a possible yet unlikely situation), then buying at a low can help counter any sudden drops after AKAM rebounds up to touch the horizontal line (an approximately 7% gain).
This can offset any unforeseen losses.
Please let me know if you have any feedback or if there is anything I missed out. I appreciate the feedback.
AKAM - Ascending Triangle by AHiray on TradingView.com