LinkedIn Beat Earnings Estimates Thursday – Now What?

LinkedIn, $LNKD, came out with their earnings after the market closed Thursday night, beating the analyst estimates on both earnings and sales. Traders liked what they saw as it is trading over $7 higher, or 9% higher, in the after hours market, at 83.30, in the red circle, as I write this. So is it done? Will it go higher? What do you do from here? A look at the chart below give a very bullish view if this price action can hold up in the normal market.

LinkedIn, $LNKD

The move Thursday night if it holds into Friday would be a break out of a bull flag higher in an uptrend since the beginning of the year. But it also signals a break out over downtrending resistance at 80.30 going back to the IPO day in May last year. This is a break of the bearish longer term down trend. A look at the Moving Average Convergence Divergence (MACD) indicator shows that it is averting a bearish negative cross with a glancing move higher. It also has a bullish Relative Strength Index (RSI) at just under 58 and turning back higher. This chart is turning bullish. There is resistance higher now at 84.34 and then 90.20 followed by 94.25. And you also now have a great place to put a stop just below that trend line.

No doubt it will continue to be a momentum driven and volatile stock but Thursday’s reaction gives you a great reward to risk opportunity for an upside continuation play.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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