LNKD showed relative strengthYeasterday US markets closed in red with QQQ -0.8%, SPY -0.9% and DIA -0.94%.
But this social network reversed from lows and closed near highs.
I think we are close to resolution of this wide range with upside bias because of that strength. Now we have higher low @ $143.45 and important intermidiate support @ $145 that was retested intraday.
Another action point is previous high of the day @ $149.50. If it will go above and hold we can see $153.34
Strength
NOW get long nowStock came from $26.33 to $71.80 for one year. Then agressively sold off from high. Pretty deep pullback which we can measure with fib levels - 61,8% is support - the last chance for bulls to prove that it is not reversal.
Yeasterday it went through lows but managed to get back and closed on highs. Showed us relative strength vs broad market (SPY, DIA and QQQ showed some breakout failure signals and closed around 1% down)
Despite it is below all key moving averages I have thoughts that money can rotate into underperforming stocks as many sectors are extended and markets are nervous so it is difficult to buy them.
Trade Plan:
Enter: now @ $47.82 or wait for additional confirmation brak up through consolidation resistance @ $49
Stop: below low of the day where sellers failed to hold below $46 then we have support from $44 to $45
Target: $53 swing high where 200 MA lies then we have $55
QCOR relative strengthWith markets down around 1% this biotech company showing us relative strength.
It is trading on highs above all key moving averages in very tight consolidation above previous swing high @ $85.50.
Entry here and expect break up of $88.50. If market will show us some strength, this stock could be a good candidate for long.
