Watch These Akamai Stock Price Levels After Post-Earnings Surge

Akamai Technologies (AKAM) shares surged more than 10% on Friday after the cloud services company reported strong earnings and lifted its profit outlook amid robust demand for the its computing and security offerings.

The better-than-expected report comes as welcome relief for Akamai shareholders who suffered through a decline of about 31% in the stock between February and June as investors fretted over slowing revenue growth in the company’s content division. However, these concerns were partially eased after Akamai reported that sales in its compute and security segments tallied two-thirds of total revenue for the first time as it aims to refocus on profitable areas of its business.

Below, we analyze Akamai’s chart and use technical analysis to outline key post-earnings price levels to watch out for.

Inverse Head and Shoulders Breakout

Akamai shares carved out an inverse head and shoulders between May and August before staging a breakout above the pattern’s neckline following the company’s upbeat quarterly results.

Importantly, the move occurred on the highest trading volume since early May, increasing the likelihood for follow-through buying.

Keep These Post-Earnings Price Levels in Focus

Looking ahead, there are four important price levels on the Akamai chart that investors should monitor.

The first sits around $102, less than half a percent above Friday’s close, where the shares face potential overhead resistance near the August 2023 earnings gap, the prominent October swing low, and a countertrend move that formed during April.

A close above this level could see the stock test $109, a location on the chart where sellers may look to lock in profits near the September and October twin peaks that align with a range of comparable trading levels from late February to early April. This area also sits near the closely watched 50% Fibonacci retracement level when applying a grid from the February high to June low.

The next level to watch lies around $113, where the shares may encounter resistance from a trendline linking a minor peak in November last year with the March high that formed towards the start of stock’s downward trending move between February and June.

Finally, ongoing buying could see the stock revisit the $120 level, where the price would likely attract selling pressure near the December 2023 swing high, which sits in close proximity to the upper trading levels of the Feb. 14 gap day.

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As of the date this article was written, the author does not own any of the above securities.