3 Big Stock Charts for Tuesday: Akamai Technologies, Inc. (AKAM), Dollar Tree, Inc. (DLTR) and Express Scripts Holding Company (ESRX)
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There were three stocks that made significant moves in the Nasdaq 100 yesterday, despite a rather lackluster trading session. Shares of Akamai Technologies, Inc. (NASDAQ:AKAM), Dollar Tree, Inc. (NASDAQ:DLTR) and Express Scripts Holding Company (NASDAQ:ESRX) all jumped more than one percent on the day’s trading, but what do the charts say about their moves?
Today’s three big stock charts look at whether these three companies are at the beginning or end of a trade-worthy move worth jumping on.
Akamai Technologies, Inc. (AKAM)
Akamai shares surged above $52 yesterday on no news and relatively heavy volume as the stock continues to move from its recent base at $48. The recent bottom appears to be turning into an inflection point for the stock as AKAM prepares to announce its quarterly earnings a week from today.
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Akamai shares crossed above their 50-day moving average last week, putting it on the radar of technical traders. This, along with the bounce from $48 has put the stock into a neutral rating from our technical models.
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Yesterday’s move took AKAM stock to its top Bollinger Band, where it was contained and is now seeing some selling pressure. This suggests that we’re likely to see the stock move towards $50.50 before mounting another advance.
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Akamai shares are heading towards an overbought reading from the RSI indicator. This puts the stock in danger of seeing a “sell the news” move after its earnings. A selloff ahead of next week’s report will set a better stage for the bulls and AKAM’s continued technical rebuilding.
Dollar Tree, Inc. (DLTR)
Retail stocks have been struggling, despite growing consumer confidence and spending. Unlike a few years ago, the discount retail chains are struggling along with the mid-range and high-end retailers.
The rally in Dollar Tree shares is suspect in the view of the intermediate-term trend and it should be watched cautiously.
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Monday’s rally brought DLTR shares to resistance at the $70. This round-numbered resistance level is notable when looking at the long-term chart for Dollar Tree Stock.
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Like Akamai, DLTR’s one-day surge took the price to the top band of the its Bollinger Band channel. Given the fact that the market is being driven more heavily by technical indicators we expect to see profit-takers move in to steal over the short-term.
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Momentum on Dollar Tree stock has been sluggish at best after their last earnings report. The stock may be able to break higher, but the declining 50-day moving average (overhead at $74.22) suggests that longer-term investors should continue to wait for a better buying opportunity for DLTR stock.