IBM Testing Upper-End Of 5 Month Trading Range

International Business Machines

shares are trading higher by $1.88 at $164.76 in Monday's session. The issue, which has been shunned by Wall Street over the last two years, being the Dow Jones Industrial Average worst performer, may be attracting buying interest from investors anticipating a dividend hike. In order make-up for the lack of growth in earnings, the company has been aggressive in supporting the share price with buybacks and double-digit dividend hikes for the last 11 years. Still a favorite of Warren Buffett, IBM has been mirrored in a well-defined trading range since November from $150.00 to $165.00. In today's session, it is attempting to breach the upper-end of the range for the seventh time over this time period. So far, in today's session it has rallied to $165.17, but has been unable to maintain that level falling to $164.00 before resuming the move higher. If $165.00 can be maintained on a closing basis, there may minor resistance at its October 21 high ($166.68), but no major resistance until its October 20 high ($170.33). That level marks the high for the day when the company announced much lower than expected Q3 EPS and revenues.