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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.

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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.

Chart source: www.decisionplus.com

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