AKAM (Akamai Technologies) has been a powerful momentum stock over the past few months. However, it looks like it's due for a playable dip. The gap down on strong volume was the first thing that caught my eye. The technicals are sending signals as well. The RSI has gone from extremes to breaking down under the 70 level. The last time the stock did this was in April, resulting in a 3 point loss. Stochastics have also moved out of extreme levels. The arrows on the chart show some nice drops when this happens. Finally, MACD seems to be leveling off. These are all signs of a coming dip.
This is what I'd call a "contrarian move", as a short here is playing against the overall trend. If I enter a short position, I will make sure to use extreme caution and a tight stop.
One of my favorite beer commercial clips, "You were open, and now you are closed!":