Top Nav

ChartWatch: One Giant Channel

Back in May, Facebook (NASDAQ: FB) was the darling of Wall Street. However, I determined that it was not the best stock to own (as far as social network companies go). I mentioned, “Facebook might be more tempting for traders, but I believe LNKD has more upside potential over the next three months.”

LinkedIn (NASDAQ: LNKD) is a great company to consider and its stock has superior value. More importantly, the shares held support at $95, as expected. Given that strong foundation, it looks like the shares made the necessary preparations to break out past $113 resistance.

A move past $113 is nothing to scoff at. Based on the chart below, such a move would result in another rise to channel resistance, which should be around $130. Over the longer term, the shares could target as high as $150 so long as this bullish channel pattern (double blue lines) continues to hold.

Much like I mentioned in May, some caution is warranted for swing traders. Those trading a move to new all-time highs must wait for $113 to be taken back first.

Over the next few sessions, I expect the shares to consolidate near the 50-day moving average (orange line), which needs to become a support area. Long-term investors can purchase LinkedIn anywhere below $97. This chart shows the price of LinkedIn shares along with an important support area for you to monitor

Equities mentioned in this article: LNKD , FB.

Income and Prosperity Offer

Income & Prosperity is designed to help you seek out the safest income opportunities and discover an entire world of dividend investments. This free newsletter has a laser-like focus on one issue and one issue only: how can investors near or in retirement generate more income. Each day, you'll receive our best investment idea - skewed towards safe income - but also including lesser known opportunities to grow your wealth while keeping it out of harm's way.
You've successfully subscribed, click the link in your email to confirm your subscription.
There was an error, and you have not been subscribed, please try again.