IBM short setup
IBM overextended on monthly Bollinger Bands and hitting trend line resistance. If this plays out similar to history I'm expecting a 20% drop within the next 200 days and about 40% drop in the next 2-3 years. Fundamentals also looking weak with declining revenues, lower margins, and burning cash. Cleary a breakout that holds to the upside will negate this bear setup. Monthly MACD about to crossover so might end up turning into a uptrend. I'm not in this trade, keeping on watch.
Never took a trade on this but it is right back to that strong resistance line. Looks like that recent move lower was a bear trap before a huge breakout but if it gets rejected here again I think it goes down to make lower lows.