IBM stock is trending up
sort term price created a rising channel with a continuation bull flag
the company posted better then expected earnings and paid dividends
long term hold is an option but here i present a trade with a good P/L (2/1)
So Mr Buffet dumped his shares of IBM and the flocks are selling at a discount. Wouldn't be surprised if Ole Country Buffet bought this dip himself!
Looking for a big long wick closing above the old neckline with volume.
or
A dip in price at open that reverse early in the morning and then blasts past the opening price with some volume.
Or
Just watch it drop...
On March 16 I said to sell and short IBM with a target of 155. Today it is likely to trade below 155. Cover your short position and you can nibble on a new long position below 155. I want to see how the chart develops but don't see a lot more downside with a 4% yield.(What is Warren thinking?)
It seems we may have a confirmation of the end of a Wave 2, ready to trade a Wave 3 LONG.
TDI in this instance shows almost oversold position and would correspond directly with the price action and structure.
The Mustard, Ketchup, Mayo and Blueberry EMAs have also all crossed (note Crossing of Ketchup and Blueberry EMAs) suggesting an imminent reversal to go...
Yup, IBM had 20 YoY consecutive quarter declines. Fundamental are bad at this time. But stock usually reflects the future. So, let's look at the chart...
IBM (1h) retraced 0.382 ($ 169.58), calculated from "Minor"-wave 3! The other levels are the measured results from the "Minute"-wave a of this ZigZag correction pattern the stock is in. Minimum retracement for a wave "c" is 0.618 of wave "a" (identical with 0.382) or 1.000 ($ 166.10) or 1.618 ($ 160.00), although reaching the last level seems to be unrealistic....
