LinkedIn (LNKD) was another promising social media stock. The stock broke out from a cup and handle base in 2013 and advanced approximately 100% over the next seven months. Only to drop 47% over the next nine months.
Since then, the stock worked on a three year head and shoulder top. The stock attempted to break down in August 2015, but that was a bit too early and obvious, and shook out the early shorts. The stock finally managed to break down four weeks before earnings, and accelerated to the down side on a poor earning’s report.
The stock has barely budged over the last six weeks as the market attempted to rally. It has only managed to pull back to the twenty day moving average in lower volume. A breakdown from these levels, in heavy volume, can be shorted.
Since then, the stock worked on a three year head and shoulder top. The stock attempted to break down in August 2015, but that was a bit too early and obvious, and shook out the early shorts. The stock finally managed to break down four weeks before earnings, and accelerated to the down side on a poor earning’s report.
The stock has barely budged over the last six weeks as the market attempted to rally. It has only managed to pull back to the twenty day moving average in lower volume. A breakdown from these levels, in heavy volume, can be shorted.
