International Business Machines Corp. (IBM): Getting Technical With The Stock

technical chart lookRick Pendergraft:  International Business Machines Corp.(NYSE:IBM) appeared on my bullish scan the other night due to the stochastic lines making a bullish crossover. At first glance, I didn’t think the setup looked all that great, but then I noticed how the previous crossovers that occurred on the daily chart with the readings in oversold territory had produced some pretty decent gains over the last nine months. As you can see, three of the last four prior to the one that occurred on Friday have produced a gain of 8.5% or more.

IBM-stock-chart

The weekly chart shows that the stock is oversold based on the weekly stochastic readings as well, in fact it is the most oversold it has been since last summer.

IBM stock has been trending downward since March of 2013 and due to this trend, the 13-week and 52-week moving averages have both made a bearish crossover of the 104-week moving average.

IBM-stock

It is also worth noting that IBM has tremendous support at the $170 level after the stock hit the level three times from October through February. If you were looking to buy the stock at a lower level, the $170 area would seem to be the optimal point to buy the stock.


(...)Click here to continue reading the original ETFDailyNews.com article: International Business Machines Corp. (IBM): Getting Technical With The Stock

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)








Sign Up

Get the InvestingChannel
Free e-Letter Today

Learn More

Independent market opinion, analysis and ideas - delivered every business day

Premium market opinions, analysis, and ideas - delivered every business day

Editor's Picks