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  

Sell half and lock in 32 cents profit. It is trading at 86.88, up 1.23.

Have a great afternoon session.

T.Kamada

Feel free to mail me your questions.

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