LinkedIn Chart Analysis Feb 12, 2014

lnkd2.12.14 It’s no secret that social media has taken the spotlight since the market meltdown in 2008. Linked In’s IPO had a rough start coming out, but the evidence suggests that in the past year it has performed quite well. The likes of Facebook, and Twitter are starting to show investors promising results for traders who wish to speculate on stocks.

We all know that past results are not and indication of future performance, but last years bull run have many  investors who are on the sidelines to reconsider the possibility that there is money to be make in the coming years.

Taking a closer look at LinkedIn’s chart could provide a clue as to what we might expect in 2014. In general the stock is without doubt, in a bullish mode. All indications point upward, and one should expect with the continuing easy money policy at the Fed, this is likely to continue.

Moving Averages a great trailing indicator takes a bullish stance as price action trades above the 200, 50, and 10 day moving average lines. The recent market correction have some people concerned but I see support levels holding up at the last breakout price. However there is concern that the 10day moving average can cross bellow the 50-day moving average in which, another correction can occur.  The recent volume spike that the sell-off could have peaked at this moment as price action has stayed above the last support area.

LinkedIn has been following suit with it’s social media competitors by implementing new and innovative ways to monetize the traffic it has. Within the realm of business, and networking LinkedIn has shown to a valuable source for all business, whether it be recruiting, developing new business, and finding new leads to cold call. Information has always been the core of driving business development, and this company has organized it in a pliable manner that make it a no brainer for any business to view it a valuable resource.

There lots of talk about doom and gloom in the markets, but as usual news can often be misleading. Prudent and objective analysis of this stock would be contrary to market opinion. As a contrarian investor, you should always blaze your own trail in forming your own opinion as to how this stock should perform in the near future. Without a doubt the future looks bright for this social network.

 

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