Will The LinkedIn Downward Trend Continue?



(Figure): Daily chart for LinkedIn Corp (NYSE:LNKD)

LinkedIn Corp (NYSE:LNKD) has been one of the best performing social media stocks in the last year and many analysts believe that the company would continue this outperformance over the next few years. The bullishness is based on the fact that investors believe that LinkedIn Corp (NYSE:LNKD) is the only social media stock which has any kind of value when it comes to business user community.

Many analysts believe that with more and more corporations using the companies’ website to hire new individuals, the stock has suddenly become a “must-buy” social media stock. Bears on the other hand, believe that the company would have to outperform quarter on quarter to be able to justify the current lofty valuations. Many believe that the recent listing of e-commerce giant Alibaba would have investors take a fresh view on a company like LinkedIn Corp (NYSE:LNKD).

On the daily charts, LinkedIn Corp (NYSE:LNKD), has been in a downtrend right from the time it hit an intraday high of $233 and currently has formed a support at $205. The stock has been in a momentous uptrend over the last year and currently trades above both of its major daily moving averages which is a hugely bullish sign. The momentum indicator for LinkedIn Corp (NYSE:LNKD) have given fresh sell signal and are indicative of the shift of momentum towards the sell side. The relative strength index for the stock is currently showing no signs of inherent strength which is a cause of concern for the bulls in the short term.


Actionable Insight:

Traders can buy LinkedIn Corp (NYSE:LNKD) at current levels with a strict stop loss below $205 with an intermediate target at $230

Short LinkedIn Corp (NYSE:LNKD) only if it closes below $205 with a stop loss at $212 for an intermediate target at $191.





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Deepak Tiwari, a law graduate, has been working as a journalist for six years now. He currently writes on Bitcoin, economic, and Forex related news at ForexMinute, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it offers for readers, traders and brokers. His other specialties include writing on law & governance, finance, internet marketing, careers, politics, international relations & diplomacy, etc.