Monday, August 21, 2006

Trade of the Day - Akamai Technologies Inc. NASDAQ (AKAM)

Long AKAM as it reverses off of its pivot point. The target was a gap fill. Unfortunately, all of the MAs converged above price at the halfway point and AKAM could not reach the target. I moved my stop up to $39.50 and was stopped out. On the following 15 minute bar, I decided to go short hoping that the pivot would not hold as support on the next test. It took most of the day, but price finally broke support mid-afternoon and after a retest, fell hard in the last half hour of the session.

As per last night's watch list, long NVEC on a reversal from support at $26.30. Although, I managed to pocket $0.75 on the trade, this type of reversal is usually good for a retest of recent highs. Today's market was just too weak.

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