10/28/99
Lehman Brothers Holdings (LEH)
Points to watch: This
one will depend on the outcome of this morning's economic data.
Lehman
rallied 4.19 yesterday to close at 68.43, its highest close since August
4th 1998. The stock near its high for the day, making back the ground it
had lost since Friday. The stock is now trading in the middle of the
strong resistance zone which exists from 68-69.31. This level acted
as resistance yesterday and last Friday, and also provided resistance in
April 1999 and August 1998. Daily MACD gave a buy signal on October
5th.
A buy signal would be given
on a break above resistance at 69.31, with the stock next running into
resistance at 73 and then 78. Support is at 63.63.
In
the event today's economic data is unfavorable and the financial stocks
get hit, we would short this if it fails to hold support at 63.63, with a
downside target on the trade of 55-57.5.
