Akamai Technologies (AKAM) reported Q1 earnings on 4/28 after-hours. The company reported EPS of $1.20, which beat consensus estimates of $1.16. Revenue came in at $764.30M, which also beat consensus estimates of $749.75M. The company pulled its full year 2020 guidance due to uncertainty associated with the COVID-19 pandemic. On the heels of this report, Morgan Stanley downgraded AKAM from Overweight to Equal-Weight and set a $107 PT. The analyst believes that the remote-work tailwind will fade through the end of the year. AKAM traded down about 4% on the trading day. Given this background, let’s take a look at the weekly charts.
Akamai Technologies (AKAM) – annotations by askSlim.com
At askSlim.com we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.
askSlim.com Technical Briefing: The weekly analysis suggests that the stock has formed a megaphone pattern. The next projected intermediate-term low is due between the end of May and early June. Weekly momentum is positive.
On the upside, there is a Fibonacci extension zone from 108.23 – 110.09. On the downside, there is an intermediate-term support zone from 91.72 – 87.81. For the bears to gain control of the intermediate-term, we would need to see a close below 82.26.
askSlim.com Sum of the Evidence: AKAM has formed a megaphone pattern on the weekly. The analysis suggests that the stock will trade in a range within the megaphone for the next several weeks. We would expect to see AKAM trade down to the intermediate-term supports beginning at 92 by the end of May.
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