Chart of the Week: IBM
Hey good morning everyone. Happy Wednesday. It’s time for our chart of the week. This week we’re gonna focus in on Big Blue, IBM. Check this chart out. It’s doing pretty well right now.
We can see that after that big huge surge in October – this was earnings-driven – two huge candles over here.
The stock pretty much stayed within a range of about 20-25 points for the better part of two and a half months and had really good earnings reported last week.
You can see it gapped up above there, much like it did in November, but it’s trying to get back above that $315 level, where it spent about one day above there in November and came right back down again. But found some good support at around the $290 level.
What you see here – what I find interesting – is this three-day pattern. It’s called a morning star. It’s a dark shadow candle – doesn’t matter if it was a gap up or a gap down – it’s a dark candle followed by a doji, followed by positive a white bar.
So we like to see a little follow through to the upside. A higher high and higher low means that pattern is confirmed and we can probably get some more upside to IBM going forward.
So take a look at the indicators over here.
We see that the relative strength is making higher lows and higher highs, too.
Money flow has been positive.
We’ve seen good volume trends as well too. Take a look at the volume down over here. It’s been pretty brisk since the early part of December. We did have a little bit of a dip in volume towards the end of the year, which is normal. But the buyers picked up the pace in January and have been driving the stock higher.
MACD is on a buy signal down over here – you can see that here as well. MACD crossover here, that is generally bullish. It is confirmed too.
I like IBM up here. Probably make a run up towards $350 by the spring, perhaps April/May. This stock has got a lot of energy here to keep the earnings going. We can see the stock making a nice run higher.
That’s IBM. Thanks so much for watching everyone.
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