Limelight Networks (Friday’s close US$5.98) traded above a rising trend-line from late-2016 through 2017 (dashed line), stayed below a falling trend-line until the end of 2019 (dotted line) and then began a new up-trend in late-2019 (solid line).
The stock became overbought last July when it rallied far above its rising 40-week Moving Average (A); it pulled back toward its Average recently where it appears to have found good support near ±$5.50 (B). Only a sustained decline below $5.00-5.50 would be negative. A rise above $6.50-7.00 would signal the resumption of the up-trend.
Behaviour indicators including the rising trend-line (solid line) and the rising 40-week Moving Average (40wMA) confirm the bullish status.
Point & Figure measurements provide near-term targets of $8.50 and $9.50. Higher targets are visible.
Chart source: www.decisionplus.com
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