We placed a Fibonacci sequence on Electronic Arts Inc. and as seen in the graph, two positions could be taken depending on the movement of the price.
If the price breaks upwards the yellow line, a Long position can be placed around 105.59 $ per share, the Take Profit around 112.67 before the next support line (Green line) and Stop Loss below the yellow line as a support at approximately 100.90.
Risk/Reward ratio 1.52.
On the other hand, if the price continues upwards and then plunges back down a short position can be taken around 102.05. The Take Profit at 93.29 before the red support line and Stop Loss after the top yellow line around 106.15.
Risk/Reward ratio 2.14.
If the price breaks upwards the yellow line, a Long position can be placed around 105.59 $ per share, the Take Profit around 112.67 before the next support line (Green line) and Stop Loss below the yellow line as a support at approximately 100.90.
Risk/Reward ratio 1.52.
On the other hand, if the price continues upwards and then plunges back down a short position can be taken around 102.05. The Take Profit at 93.29 before the red support line and Stop Loss after the top yellow line around 106.15.
Risk/Reward ratio 2.14.