Use This Fibonacci Level In Your Trading
Lehman Brothers (LEH)
reported better than expected fourth quarter earnings before the open.
Excited crowd flocked to the stock, and LEH gapped up.
09:48:48 (From TradersWire)
| Action | Symbol | Order Type | Setup | Stop | Current Price |
| Buy | LEH | Market | Long Gap Pullback |
86.35 | 86.56 |
Needless to say, it is not wise to jump in the
market at the open. We should observe the stock at least a few minutes. Look at
the 1-minute chart below. LEH pulled back from its intraday high and tested its
50% Fibonacci level successfully. Notice, the positive stochastic divergence. We
bought LEH shortly after 9:45 at the market.
09:54:23
Follow up on LEH Â
Sell half and lock in 32 cents profit. It is trading at 86.88, up 1.23.
Have a great afternoon session.
Feel free to mail me your questions.
Â