Go to the list of all blogs
Harry Richardson's Avatar
published in Blogs
Jan 24, 2019
TickeronGET DAILY SIGNALS
Akamai Technologies Hitting Upper Rail of Downward Sloped Channel Ahead of Earnings Next Month

Akamai Technologies Hitting Upper Rail of Downward Sloped Channel Ahead of Earnings Next Month

Cloud-based application software firm Akamai Technologies (Nasdaq: AKAM) has been trending lower since June and a downward-sloped trend channel has formed as a result. The stock has cycled lower with highs from June, July, September, November, and December forming the upper rail. The stock hit the upper rail on Friday and then turned lower on Tuesday.

I didn’t mention the hit from January as there is still a chance that the stock could break out of the channel with another move higher. But at this point it looks like the stock is poised for its next downward move. The stock’s 50-day moving average is in the same proximity as the upper rail and that could be adding another layer of resistance.

The connected peaks in the stock have come when the stochastic readings were in overbought territory and the indicators are there again. The RSI was elevated, but not in overbought territory at the peak on Friday. That has been the case in most of the instances where the stock hit the upper rail—the 10-day RSI has been elevated but not in overbought territory.

Akamai is set to announce earnings on February 12 and that could serve as a catalyst for the stock to break out of the channel. The stock will have to stay up near the upper rail for the next few weeks for that to happen. The earnings report in November did cause the stock to jump sharply, but it only took it from the bottom part of the channel up to the upper rail.

The company has solid fundamental indicators right now with an ROE of 13.8% and a profit margin of 25%. Earnings and sales have grown at a slow pace in recent years, but the earnings grew by 47% in the last quarterly report and analysts expect earnings to grow by 37% for the year as a whole.

Related Ticker: AKAM

Contributor

Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.


AKAM sees its 50-day moving average cross bearishly below its 200-day moving average

The 50-day moving average for AKAM moved below the 200-day moving average on October 05, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on November 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on AKAM as a result. In 55 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 67%.

The Moving Average Convergence Divergence Histogram (MACD) for AKAM turned negative on November 03, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In 30 of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at 64%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where AKAM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 66%.

The Aroon Indicator for AKAM entered a downward trend on November 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Bullish Trend Analysis

The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where AKAM's RSI Indicator exited the oversold zone, 26 of 35 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 74%.

The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.

Following a +6.48% 3-day Advance, the price is estimated to grow further. Considering data from situations where AKAM advanced for three days, in 204 of 336 cases, the price rose further within the following month. The odds of a continued upward trend are 61%.

AKAM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is 30 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating steady price growth. AKAM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 67 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.515) is normal, around the industry mean (16.272). P/E Ratio (29.154) is within average values for comparable stocks, (52.956). Projected Growth (PEG Ratio) (1.177) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.430) among similar stocks. P/S Ratio (3.598) is also within normal values, averaging (103.889).

The Tickeron SMR rating for this company is 75 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AKAM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.

Notable companies

The most notable companies in this group are Microsoft Corp (NASDAQ:MSFT), Oracle Corp (NYSE:ORCL), Palo Alto Networks Inc (NASDAQ:PANW), Crowdstrike Holdings Inc (NASDAQ:CRWD), Block Inc (NYSE:XYZ), NetApp (NASDAQ:NTAP), Zscaler (NASDAQ:ZS), Twilio (NYSE:TWLO), Okta (NASDAQ:OKTA), MongoDB (NASDAQ:MDB).

Industry description

Computer communications industry develops technology that allows computing devices to exchange data with each other using connections/data links between nodes. Common types of computer network include Cloud (IAN), Internet, Wide (WAN, Local (LAN)/Wireless(WLAN) etc. The industry is an ever-more important part of technology, and is set to become even bigger as the Internet of Things (IoT) rapidly forays into the various aspects of our lives. Cisco Systems, Inc., Palo Alto Networks, Inc. and Arista Networks, Inc., Fortinet, Inc. are some of the major computer communications companies.

Market Cap

The average market capitalization across the Computer Communications Industry is 34.56B. The market cap for tickers in the group ranges from 48.8K to 3.94T. MSFT holds the highest valuation in this group at 3.94T. The lowest valued company is WMHI at 48.8K.

High and low price notable news

The average weekly price growth across all stocks in the Computer Communications Industry was -7%. For the same Industry, the average monthly price growth was -15%, and the average quarterly price growth was -10%. HPAI experienced the highest price growth at 62%, while RZAI experienced the biggest fall at -58%.

Volume

The average weekly volume growth across all stocks in the Computer Communications Industry was -12%. For the same stocks of the Industry, the average monthly volume growth was 26% and the average quarterly volume growth was -52%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 49
P/E Growth Rating: 51
Price Growth Rating: 64
SMR Rating: 78
Profit Risk Rating: 91
Seasonality Score: 10 (-100 ... +100)
View a ticker or compare two or three
Interact to see
Advertisement
A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

a provider of cloud services for delivering, optimizing and securing online content and business applications

Industry ComputerCommunications

Industry
Internet Software Or Services
Address
145 Broadway
Phone
+1 617 444-3000
Employees
11000
Web
https://www.akamai.com
Interact to see
Advertisement
The Bitwise Solana Staking ETF (BSOL) advanced roughly 18% over the trailing 30 days, closely tracking a sharp rally in Solana (SOL). The move extends a broader recovery, with BSOL up approximately 77% over the past three months from its mid-2026 trough.
MSTY is an actively managed single-stock option income ETF (exchange-traded fund) that writes call options on Strategy (MSTR), formerly MicroStrategy, to generate current income. The portfolio is anchored by U.S. Treasury bills and MSTR option contracts rather than a diversified basket of equities, concentrating exposure in one volatile underlying.
AMDL has surged roughly +64% over the past 30 days, from about $47.59 to $78.10, mirroring a powerful rally in its sole underlying stock, AMD . The fund is a leveraged single-stock ETF (exchange-traded fund) designed to deliver 2x the daily return of AMD, amplifying both gains and losses.
CCOI shares dropped approximately 28% in premarket trading on May 5, 2026, following the company's Q1 2026 earnings release before Monday's market open. Service revenue of $239.2 million missed analyst consensus estimates of $241.3 million, falling 3.2% year-over-year and 0.6% sequentially.
DVLT shares dropped approximately 18% in premarket trading on May 5, 2026, from the prior Friday close of $0.74 to around $0.61. The primary catalyst is the company's announcement of a $60 million public offering of 109,090,910 shares of common stock, expected to close around May 5, 2026 — a heavily dilutive transaction for existing shareholders.