Chart Lesson of the Week – JEF ( NYSE:JEF Jefferies Group Inc)

If you like this type of analysis let me know on twitter or use the TWEET button above & i’ll do more of these in 2012


Chart Lesson of the Week – JEF ( NYSE: JEF Jefferies Group Inc.)


I wanted to share a stock we traded in November and sold into December.

Did great on it made 5% to over 25% by scaling out of it but missed an additional 20%

I noticed a similar pattern to what I had seen in 2009 where stocks continued up off the March lows and retraced nicely back and forth into the 20day sma ( That is one reason why I like to put moving averages on my charts )

In this case you can see the perfect support levels at the 20day sma.

Since the early Dec sales I did on JEF its provided 3 other buy points and 2 bounces so far. This last dip is a buy area as long as you use a suggested stop under $14.75-$14.90 ( so just under the critcal $15 and 20day sma ) if that 20day sma fails or the markets retraces JEF could easily test back to the 50day sma which is around $13.46

A secondary more aggressive play would be to buy over that $17 breakout and over the 200day sma (green line on the daily chart below)


Check the notes on the chart & hope you find this helpful

If you like this type of analysis let me know on twitter or use the TWEET button above  & i’ll do more in 2012 of trades i’ve done or interesting chart patterns that I use.

Click on the chart twice to see on separate page with large notes .

Happy Trading,



Posted in Charting & Analysis