How to Play IBM with the least risk
I am looking at a few possible scenarios' for taking a position in IBM with the least possible risk.
Scenario 1
Price drops below 1/25 low, but not by much and then starts moving back up. I would take position long with a stop about .20 below the low. I would take 1/2 profit once I get a 2/1 return.
Scenario 2
If price moves to a new high I would enter with a the knowledge that this a risky entry as I see it. It could easily be a "look above and fail", in which case it could easily go slide tot he bottom of the recent gap. Personally, would not do this unless it starts build a tight range between 190 - 196, and I would reevaluate.
Scenario 3
price moves to the origin of the Gap. Once I see confirmation that it is making a move up I would enter. I want to see the gap filled. That's at the 175 area. Ideally I would love to see it retrace to 167 area.
I am looking at a few possible scenarios' for taking a position in IBM with the least possible risk.
Scenario 1
Price drops below 1/25 low, but not by much and then starts moving back up. I would take position long with a stop about .20 below the low. I would take 1/2 profit once I get a 2/1 return.
Scenario 2
If price moves to a new high I would enter with a the knowledge that this a risky entry as I see it. It could easily be a "look above and fail", in which case it could easily go slide tot he bottom of the recent gap. Personally, would not do this unless it starts build a tight range between 190 - 196, and I would reevaluate.
Scenario 3
price moves to the origin of the Gap. Once I see confirmation that it is making a move up I would enter. I want to see the gap filled. That's at the 175 area. Ideally I would love to see it retrace to 167 area.