LinkedIn Corp (NYSE:LNKD) closed below $200 on 5/5/15 for the first time since the end of October 2014, having collapsed from prices above $250 a share just last week following its disappointing earnings report.

$LNKD : LinkedIn Corp.

$LNKD : LinkedIn Corp.

The daily chart shows just how far LNKD has been set back following the company’s earnings announcement last Thursday, having lost a half year of gains in just a single day.

Since LNKD closed below $200 yesterday, there is a potential for a continuation to the sell off, as it is an important psychological level for the bulls. However, there is a notable congestion zone of support between the $190 and $200 region, so the bears may have trouble pressing for much further downside.

On the two hour chart, it’s evident that the $210 level is near-term resistance above, which the bulls were unable to overcome on the opening gap higher on Monday. -DMI is still above +DMI and the ADX line is rising, so the downtrend is still intact with the bears dominating the price action over this time frame. However, the RSI signal is showing some steadiness, which may indicate that the bulls are regrouping.

Stocks usually don’t collapse like this without some attempt at a gap fill, so I would not be surprised to see the bulls try to pull LNKD back above $200, but the bears may be able to push the stock even lower before that happens, with the $190 level being support below.