Jefferies Group Ready To Trade Higher

JEF trading to a low of 23.05 today which could have triggered the end of its most recent down trend. We’ve been expecting JEF to rebound from a trading range of 24.09 and 22.82 its 53% and 62% Fibonacci retracement levels explained in the trading concepts write up.

Although the 5 minute and 3 minute trading time frames show that a push to a lower low than todays 23.05 may come, longer time frame traders should begin accumulating shares for the anticipated move higher if any pullback shows itself.

Reference the JEF trading concepts strategy for more detailed sell stops and profit levels, as the strategy for entering JEF at these levels is relative to the analysis that JEF is not yet complete its wave 5 of parent wave 1.

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By SSTtrader | November 30, 2009 | Watch List | 3 Comments |
  • daytrader

    JEF traded very strong today, but today was not probably the day to go all in, at least at the close. This could have been an overextended corrective wave to the upside.

    JEF could trade higher to 24.56 – 25.00 level, the 200 day moving average on the 15 minute chart, and still test or take out its prior low. JEF has given the signal that it wants to go higher, but the bottom put in of 23.05 has not been sufficiently tested.

    As mentioned prior, long term traders should average in on down days. Look for JEF to trade lower to 23.50 area or break the 23.05 level before the larger trend changes to the upside.

    • daytrader

      Today was a great set up day to jump into JEF in anticipation that the trading low will hold. Today JEF got the retest of the 23.05 level that we were patiently waiting for and a trade signal was executed to profit from a move higher.

      If our analysis is correct at the 30 minute trading time frame JEF will reach its old highs. In prior posts in the trading concepts categories it is explained that if JEF trades with its recent trend higher to these levels it will break the highs.

      Keep in mind as always to trade within your time frame. The anticipated low of 22.82 was not met. Follow the trade with this alert link.

  • daytrader

    Today JEF finally reached our initial price target of 22.82. A 62% Fibonacci retracement level. 22.83 was the trading low of the day and a nice rebound from this level was seen.