Daily Stock Report

International Business Machines Corp. - (IBM) - June 16, 2022

Computer and software pioneer International Business Machines (IBM) had been a perennial relative strength underachiever until recently. Big Blue spent all of 2013-2021 in the red zone of the SIA S&P 500 Index Report. This year, it has climbed back up the rankings and recently returned to the Green Favored Zone for the first time since July of 2012. Yesterday, IBM finished in 78th position, up 9 places on the day and up 92 spots in the last month. 

This 10-year monthly chart highlights the strength of the uptrend that has emerged in International Business Machines (IBM) shares over the last two years. Since 2014, the shares have been trending sideways in a range mainly between $90.00 and $135.00. The last retest of the bottom of this zone came in the 2020 market crash, at which time support was successfully retested. Since then, the shares have been under renewed accumulation, establishing a new uptrend of higher lows. 

In May, IBM completed a bullish Ascending Triangle base with a breakout over $135.00. The shares have continued to climb since then and are bumping up against their 2013 peak near $145.00. Some resistance may appear near the $150.00 round number, but measured moves from the triangle and previous trading ranges suggest potential upside resistance near $160.00 and $180.00 on trend. Initial support appears at the 50-day average near $132.00 followed by the $125.00 round number and then $120.00. 

A major breakout is underway in International Business Machines (IBM) shares. IBM spent 2016 to 2022 stuck in a wide range between approximately $80.00 and $130.00. Since bottoming out with the market, IBM has been under renewed accumulation building an upward trend of higher lows. This month, IBM has broken through $140.00 to a new all-time high, completing a bullish Ascending Tringle Base and adding to a strong resume of active bullish pattern signals inclugin a Spread Triple Top, a Triple Top and a Double Top. 

Based on horizontal and vertical counts, upside resistance on trend may appear near $153.75, $166.40 and $176.60. Initial support appears near $131.20 based on a 3-box reversal. 

With a bullish SMAX score of 8, IBM is exhibiting strength against the asset classes. 

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