IBM Could Be Geared Up For Another Move In The Coming Weeks

International Business Machines Corp. IBM shares are trading higher Tuesday after the company posted strong first-quarter financial performance.

The company reported revenue of $18.75 billion, up 3% from a year ago. The wall street consensus was $18.3 billion.

IBM's stock was up 1.1% at $139.62 at last check.

International Business Machines Daily Chart Analysis

• Shares look to have broken out of what technical traders would call an ascending triangle pattern and now look to be testing old resistance as support.
• The stock is trading below the 50-day moving average (green), but above the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• Resistance may be found near the 50-day moving average, while the 200-day moving average may hold as an area of support.

Key International Business Machines Levels To Watch

• The ascending triangle pattern broke out and now previous resistance near $135 may hold as support.
• The higher low trendline may continue to hold as support following the breakout.
• The Relative Strength Index (RSI) made a large jump in the past few days and now sits at 49. The RSI rising throughout the past few days means there have been more buyers stepping into the stock. There are now almost equal buyers and sellers in the stock.

What’s Next For International Business Machines?

Bullish traders would like to see the stock bounce at support and start to rise. Bulls would like to see the stock hold above the higher low trendline to maintain the trend it's in. Bulls would also like to see the stock cross back above the 50-day moving average.

Bearish traders would like to see the stock fall below the $135 level and then continue to fall below the higher low trendline. Bears would also like to see the stock cross below the 200-day moving average for sentiment to turn bearish.