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International Business Machines Corp (IBM) - Sept 8, 2023

International Business Machines (IBM) spent most of a decade stuck in the Red Zone of the SIA S&P 500 Index Report between early 2013 and early 2022. In the last eighteen months, however, IBM’s relative strength has improved significantly. In the last month, IBM has broken out of a downtrend in the rankings and yesterday it returned to the Green Favored Zone for the first time since January. Yesterday it finished in 125th place, up 6 spots on the day and up 55 positions in the last month. Back in May, a downswing in International Business Machines (IBM) shares ended with a successful retest of support near $120.00. Since then, the shares have been under renewed accumulation, snapping out of their previous downtrend, establishing a new uptrend of higher lows, completing a bullish Golden Cross of its 50 and 200-day moving averages, and most recently, breaking out to a new all-time high.

Measured moves suggest the potential for upside resistance near $156.00 and then closer to the $175.00 round number. Initials support appears in the $140.00 to $142.00 area where an uptrend line and a recent higher low converge.

Although International Business Machines (IBM) has generally been trending upward since the March 2020 market bottom, accumulation has accelerated since the October 2022 market low. In the last four months, the shares have completed two bullish Double Top breakouts and the new advance has extended with the shares breaking out to a new all-time high and completing a bullish Spread Double Top pattern.

Vertical and horizontal counts suggest potential upside resistance may emerge near $172.85 then $187.10 on trend. Initial support appears near $136.29 based on a 3-box reversal.

With a perfect SMAX score of 10, IBM is exhibiting strength across the asset classes.

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