LinkedIn Corp. stayed above a long-term rising trend-line for more than one year (dashed line). However, investor sentiment turned negative as selling pressure drove the price simultaneously below support (dotted line), below the rising trend-line (dashed line) and below the 40-week moving average (A).
The stock declined to a recent low of $136.02 (U.S.) (B) and is currently in the midst of a recovery rally; a minor move toward about $190 would provide a good exit opportunity in view of lower targets. Only a sustained rise above $200-$210 would cancel the current downside risk.
Point & Figure measurements provide targets of $125 and $115.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.