Limelight Networks our mid-February stock pick continues to consolidate in tight trade just above a rising 20 period EMA. Still even on the trade since our entry into the stock on Feb 10th at an average price of $2.43 we remain bullish on the issue at these levels. Positive volume cues that first appeared during the stocks basing pattern continue to appear, the most recent of which occurred on Mar 16th when shares popped 10% in heavy trade off the back of record breaking online traffic levels on Tuesday, March 14, across its global content delivery network.
The stock is currently neatly contained below the $2.60 level and a rising 20 EMA at around $2.40. Our current stop loss remains at a $1.70 and our profit target at $4.00. A decisive break out above $2.60 would give us room to adjust our stop higher to former cup resistance at $2.00 and a further move and close above $3.00 would then clear us to move to a break even stop.