Swing Trade Idea (AKAM) – April 2, 2024
Our bearish trade for Tuesday, April 2nd is Akamai Technologies Inc (AKAM). AKAM is part of the Technology Sector, which traded at 0.9% over the last month, with AKAM underperforming at -1.43% over the same period.
AKAM had a sharp pullback over the last month and found resistance at around $115 from where further downside is expected. AKAM is currently underperforming relative to the Technology sector which has also traded into resistance. Both AKAM and its sector are extremely overbought and a healthy pullback would be expected.
As a close, if AKAM were to trade above $113 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $6.54.
