I have been following the price action of LinkedIn (LNKD) closely over the last several months (please search on the home page). In particular, the clusters of high wick candles that appeared in April and March, and the confluence of Fibonacci time and retracement lines that occurred last month.
High wick or long upper shadow candles reflect an inability to hold new highs and are often a precursor to pullbacks. A significant decline in the stock price occurred at the beginning of May, and in the month that has followed there has been a concerted effort to base above Fibonacci support.
Yesterday, LinkedIn was up 3% and would have closed higher, if not for the drag of the late day broader market sell-off. I’m looking at another close in upper candle range above the $199.00 level as a good risk/reward entry point, with an initial stop below Fibonacci support.