Since LinkedIn went public back in 2011, its performance has been quite erratic – but even after it takes a beating, it has steadily moved higher. Other names in the social media space, like Facebook and Twitter, have not been able to rally quite like LinkedIn after a drop. Today, we find the stock well off its all-time highs and a series of odd chart patterns lingering, which you can clearly see in the chart to the right. Given its strange behavior, this chart is a tough read, but we may see some daylight ahead.
The chart shows a couple of island reversals, or price segments bracketed by gaps in the chart. It looks as if a price group is abandoned, and even though the the indicators are mixed, price and volume are improving. The MACD is not giving us much of a signal, but it can certainly move up to buy quite easily. We could see the stock fill the nearest gap, make a run at the 200 ma, and then eventually at the gap down point near 250.
LinkedIn Chart Analysis
Take a deeper dive into the chart action (Nasdaq: LNKD) and learn how to read the technicals and my analysis as I mark up our chart of the week.
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LinkedIn Corporation, together with its subsidiaries, operates an online professional network worldwide. The company, through its proprietary platform, allows members to create, manage, and share their professional identity online; build and engage with their professional networks; access shared knowledge and insights; and find business opportunities. It also offers LinkedIn mobile applications across a range of platforms and languages, including iOS for iPhone and iPad, Android, Blackberry, Nokia Asha, and Windows Mobile; and a public Website that allows developers to integrate its content and services into their applications. In addition, the company provides talent solutions, such as LinkedIn Corporate solutions that enables enterprises and professional organizations to find, contact, and hire qualified candidates; LinkedIn Job Postings that allow enterprises and professional organizations to advertise job opportunities on its network; and subscriptions for individuals. Further, it offers marketing solutions, including enterprise solutions to target larger advertisers who receive dedicated account management and additional marketing solutions