The Crash Of LinkedIn In 1 Chart

The majority of stocks are off to a rough start in 2016, and LinkedIn Corp KNKD is certainly no exception. The stock suffered a horrendous drop following a disappointing Q4 earnings report and now stands down 53.7 percent year-to-date.

According to data from Call Levels, traders now have the most LinkedIn notifications set for around the $100 level, right around where the free-falling stock bounced off of Wednesday’s open.

The Call Level chart shows just how much traders’ expectations for the stock have plummeted. Entering the month of February the majority of notification levels were in the $200 range.

Related Link: Robert Coleman's quote about market volatility still rings true today.

LinkedIn bulls are likely hoping that the round $100 number will serve as a psychological support level for the stock and encourage buyers to scoop up shares at a discount. It that turns out to be the case, $100 could serve as the bottom of a new trading range and an excellent buying level for traders. However, LinkedIn bears are also likely watching the $100 level for signs of a new push to fresh multi-year lows. If this ends up being the case, there may still be profits on the table for short sellers.

LinkedIn’s future remains uncertain, but one thing seems clear: there will be a lot of eyes on LinkedIn’s stock if it once again approaches $100 in coming days.

Disclaimer: Any comments, opinions, perspectives and analyses including but not limited to views etc. are that of the authors own, and in no way can be perceived as professional investment advice. Examples of analyses, calculations performed within the Content are only examples and/or instances taken from the Call Levels App. These analyses, calculations etc. should not be treated as professional investment advice, strategy or any variant of such forms as they are based on limited and open source information. All prices, data and calculations are correct at the time of posting.
 

Disclosure: the author holds no position in the stocks mentioned.