) has been a beast of late, shrugging off market weakness to break
out of a multimonth sideways pattern. The measured move off this
consolidation is $8.14, which would take the stock to $56.36. The
five-year high is $54.65. What is also reassuring is that the
breakout is being confirmed by rising volume.
What I can't shake, however, are the DeMark charts (for more on how
to interpret DeMark indicators, click
): a daily Combo Sell 13 printed yesterday with associated "risk
level" at $51.61; today will almost certainly print a daily
Perfected TD Sell Setup and a weekly Combo Sell 13; the weekly TD
Prop Exhaustion Up target is at $51.36. The monthly chart is on bar
6 of a TD Sell Setup and TDST Level Up (resistance until broken on
a qualified basis) looms large at $52.72. All these DeMark
indicators suggest that AKAM has burned through a lot of buying
power to get where it is.
To make matters more complicated, the monthly Combo and Setup
counts have nailed virtually every top and bottom of the last 10
years, and the TDST Levels Down that were in place at any given
time served as support almost to the penny. However, on a weekly
basis, the price action failed to react to the various signals in
all but one case (a Combo Sell 13 at the 2007 peak).
Confusing? Yes and no. Having climbed within reach of the five-year
high and $9.50 away from its post-Internet bubble top of $60 (back
in 2007), one would expect that buyers have spent a fair amount of
ammo, and it follows that the latest breakout higher might well be
using up the last reserves. On the other hand, if the completion of
the monthly Sell Setup and the monthly TDST Level Up fail to stop
the rise, $100 should start creeping into the conversation.
Bottom line: The traditional technical breakout looks textbook
perfect, but don't lose sight of the possibility that this may be a
final sprint before a meaningful top. Consider staying long, but
with an itchy trigger finger.