LinkedIn Looks to Challenge Looming Resistance
Click to Expand
LinkedIn (LNKD) shares hit a high in the $120 area after their May 2011 IPO. Note how two subsequent lows occurred around $60 -- the half-high following its debut. $120, which is double the lows and site of the May 2011 and May 2012 highs, has generally marked the upper boundary. But what about the brief surge though $120 last month? Anyone paying attention to year-to-date gains might have been wary of buying LNKD even at this time, as $126 marks a 100% YTD gain, since the shares closed at $63.01 on the last trading day of 2011.LNKD is still heavily shorted (see second pane in the chart), and eventually we think this $120-$126 speed bump will be taken out. However, it would behoove those with a short-term time frame to be aware of the double-low and 100% YTD gain resistance.
One other thing to worry about in the near term is the fact that LNKD's 10- and 20-day moving averages are about to complete a bearish cross. This could be another sign of near-term trouble.
The 120-, 125-, and 130-strike prices have a large number of calls for the October series, which may also contribute to the speed bump Todd mentioned.
LNKD's Equity VIX level coming off lows of the year and has a clear-cut earnings-related bias with implied volatilities spiking to the upside. Appears suited for the straddle/strangle players.
The One Overseas Market That's Trending Higher in 2014
A Phenomenon Worth Watching in 10-Year Yields
Why Bulls Need to Watch SPX 1,880
Global X Social Media ETF (SOCL) Tests Key Chart Levels
Recent XIV Action May Bode Well for Bulls
Why LinkedIn's Trendline Breach Could Be a Buy Signal
9 Levels to Watch for Apple Inc.
Keep an Eye on Twitter Around $40
Has SPDR Gold Trust Found a Short-Term Floor?
Why We Probably Haven't Seen the Last of RUT 1,100
Another Reason to Watch Dow 15,000
Why TLT Traders Should Heed Round-Number Returns
For Bonds, the Bottom Could Soon Fall Out
SPDR Gold Trust Rally Runs Into Resistance
Mid-Caps Nearing a Triple of March 2009 Lows
'Huge' Doesn't Begin to Describe S&P 1,550
Grading Stocks, Bonds, and Gold
Apple's One-Year Return Swings Into the Red
Is LinkedIn Poised for a Breakout?
Fiscal-Cliff Whispers Spark SPX Fits and Starts
Time to Short Oil-Services Stocks?
After Two-Day Swoon, Where Will SPY Find Support?
A Breakout No One is Talking About
Options Indicator Flashes Potential Buy Signal
Ways to Hedge on Apple (AAPL) Before Earnings
LinkedIn: The Uncommon Trendline We're Watching
Two Speed Bumps for Builders
Does Coal Have Farther to Fall?
Two Valuable Investing Lessons from the Homebuilders ETF
Is Bank of America Poised for Another Leg Lower?
SDS Call Open Interest Jumps to a New Two-Year High
How Long Can SPY, GLD, and TLT Stay In Sync?
The New VIX Resistance Level to Watch
Why 2,200 Matters for the EURO STOXX 50
Three Potential Speed Bumps for JPMorgan Chase
Shorts Could Drive the Next Move in SLV
Two Takes on Research In Motion: Daily
Two Takes on Research In Motion: Intraday
SPDR Gold Trust Stares Down a Technical Sticking Point
A Hidden Resistance Level for JPMorgan Chase
Featured Partners: AOL DailyFinance
© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242
Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: firstname.lastname@example.org
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.