Akamai (AKAM) declined to support in December and formed a rather large bullish engulfing on Wednesday, provided the close is above the prior day's open. Volume also ticked up to exceed the 250-day SMA. This pattern affirms support and follow through would provide an early signal that the uptrend is resuming.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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