Miss the Explosive Move in LNKD? Here is How We Knew
During a recent webinar a couple months ago we revealed the results of a recent study to determine which chart patterns are performing best in today’s market.
Now this was done on the explosive trading setups featured in the Daily Alert and Weekly Alert newsletters. So the study was done on just the top growth stocks and stocks with rising estimates with a strong tendency to beat those estimates.
And we only looked at the past year or so. We wanted to find out what is working NOW. Not 5 or 15 years ago.
We found one of the best patterns over the past year or so has been the bullish cup with handle pattern. Not the #1 pattern but one of the very best with a respectable average max gain of about 20% and a very high win ratio. Even losing trades nearly always got off to a strong start.
So when we saw this chart pattern in Linked In (LNKD) in early January we got real excited. Linked In has been the top social media stock for a while now. Although earnings quality is lacking, both revenue and earnings growth have been averaging in the low triple digits for years. Which is extremely good even for a top growth stock.
The cup with handle pattern on Linked In could be seen on a chart with a beautiful handle with tight closes. We featured the stock right after it broke out of this bullish pattern on January 20th in the Daily Alert.
Now normally we exit a trade prior to the earnings release but Linked In had some pretty impressive earnings beats in the recent past. This will often prompt us to stay in the trade through earnings.
Our customers who did were richly rewarded as LNKD took off after earnings. The stock has soared more than 55% since appearing in our Daily Alert within just a few weeks!
Those who want to find very bullish cup with handle patterns should take a look at a weekly chart of LNKD. You can learn a lot by studying the technicals in this pattern. Just fire up stockcharts.com or click the stock in the list of featured trading setups on our subscription site.