Wednesday, October 18, 2017

Is IBM Finally Making A Comeback?

IBM Stock Chart Analysis

IBM has not had the best decade, and recently it was heading to retest yearly lows as the majority of large caps were making all time highs. However, with recent earnings IBM has reacted with pure strength, making a rare +9% move.

The way the chart is setup, and the strength shown by the RSI (currently overbought), this stock is likely to climb higher in the upcoming months. The first target would be the gap fill highlighted in the chart above which closes at $168. If this trade goes bad, at least there is a very nice quarterly dividend to help you "average down".

This might be the quarter were things finally start turning around for IBM, at the very least until next earnings date.