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Chartimistic

IBM - Intrigued by Big Blue

Long
International Business Machines Corporation (NYSE:IBM)  
Chartimistic Updated   
NYSE:IBM   International Business Machines Corporation
Trend Lines Chart Patterns Technical Indicators IBM Bullish Patterns gap islandreversal
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trendline chartpattern indicator ibm bullish gap islandreversal
IBM recently gapped down after an earnings release. That gap down blew passed a previously existing gap from September 5th, leaving it open. Despite the earnings hit the stock did not fall below the previously existing support line dating back to June. If the stock starts finding some buyers it may be possible that the stock gaps back up creating an Island Reversal pattern. The $136.25 area will become important. Does it act as resistance, or will the price push right through? Chart is offering a nice reward-risk for bulls.
Comment:
Stock reached $135.92 during morning trading but pulled back from there. This is the zone where the stock bumps into that gap resistance level. I didn't like seeing the pullback at that point, with RSI below 50 & Stochastic barely above emerging out of oversold. We will have to see how the stock reacts next week.
Comment:
Price filled the gap from September 5th but has not broken out of that zone yet. Close stops in case of a failure at this level.
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