Market Overview

A Technical Look At IBM (As It Gets Closer And Closer To A Low)


This article is the opinion of Christian Tharp, CMT, author of 5 Star Trading.

International Business Machines Corp. (NYSE: IBM) provides information technology (IT) products and services worldwide.

The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. International Business Machines Corporation was founded in 1910 and is headquartered in Armonk, New York.

Take a look at the one-year chart of IBM with the added notations:

IBM had been trending sideways up until the stock’s large drop in October.

The stock then tried to hold the $160 support (green), but the $165 resistance (red) won the day and IBM took another leg lower in December. Over the last one to two months, the stock has been holding a 52-week low support at $150.

A break of that level could lead to much lower prices for IBM.

The Tale of the Tape: IBM has a key level of support at $150. A trader could enter a long position at $150 with a stop placed under the level.

If the stock were to break below the support, a short position could be entered instead.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted in: Technicals Opinion Trading Ideas