BATS:IBM   International Business Machines Corporation
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.


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