One stock in the computer services complex that looks ready to trigger a big breakout is professional networking website LinkedIn (LNKD). This stock is off to a blazing start in 2012, with shares up a whopping 68%.
If you look at the chart for Linkedin, you'll see that this stock has been uptrending strong since the start of 2012, with shares running up from a low of $61.28 to its current price of $105.90 a share. During that monster up move, shares of LNKD have consistently made higher lows and higher highs, which is bullish technical price action. This stock has also never looked back once after it crossed its 50-day moving average in January, with shares consistently trending above that average during the entire uptrend.
Market players should now look for long-biased trades in LNKD if it can manage to trigger a breakout trade on a move or close above some near-term overhead resistance at $106.97 a share with high-volume. Look for volume on that move that hits near or well above its three-month average action of about 3 million shares. On Thursday, LNKD ripped higher by 8.4% to close just one dollar off its daily highs on volume of 3.84 million shares traded.If LNKD can sustain a trend above $106.97 with strong upside volume flows, then this stock has an awesome chance of trading up towards its next significant overhead resistance level at $115.05 a share, or possibly up to its 52-week high of $122.70 a share. Keep in mind that the probability for a much larger move to happen will increase if LNKD clears $106.97 with solid volume. LinkedIn, one of Tiger Global Management's holdings, was also featured recently in "7 Stocks With Relative Strength to Beat the Market." Follow @stockpickr
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