This morning’s weakness in the market is giving us an opportunity to look for good entries to leading stocks in strong uptrends. LinkedIn ($LNKD) is one such name setting up for another leg higher.
There are people much smarter than me who have written some great pieces on the potential for this company. Leigh Drogen, who is always quick to spot the potential of anything at the intersection of technology and social media has noted the potential of endorsements, as well as making $LNKD one of his picks for 2013.
From a technical perspective the stock broke to fresh highs last week and has since traced out one of those choppy overlapping moves I find typical of countertrends. We saw a similar thing in December. Learn to recognize these patterns, if coinciding with support areas and constructed in low volume they are gifts. Notice how even on the down days it’s still finishing off its lows for the day, and during that weakness it’s really given up very little of its overall gains of the last few months. It’s absorbing any selling very well, and the underlying volume on the up days tells you there’s still plenty of appetite for this stock. I want to be long going into earnings later this week.
Some Thoughts On LinkedIn Endorsements (Leigh Drogen)
10 Favorite Stocks And Trends For 2013 (Leigh Drogen)