Valuation analysis for International Business Machines Corp. (NYSE:IBM)

International Business Machines Corp. (NYSE:IBM) bounced back nicely and many investors are giddy about the stock's recent increase given the aggressive declines it has experienced after getting close to $200 per share in 2014.  The stock recently turned higher but in doing so it also increased to a lower resistance level and that presents concerns.  If IBM is unable to move above its resistance level the stock is going to fall right back down again, and maybe more.  The inflection level IBM is facing right now is critical and investors should respect it.

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Technical Summary

Term →

Near

Mid

Long

Bias

Neutral

Neutral

Neutral

P1

129.92

113.14

112.97

P2

132.90

123.31

123.29

P3

133.96

133.01

133.09

Long Term Trading Plans for IBM

February 25, 2016, 9:02 am ET

The technical Summary and associated Trading Plans for IBM listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for IBM. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

IBM - (Long) Resistance Plan

Buy over 133.09, target n/a, stop loss @ 132.83.
If 133.09 begins to break higher, the technical summary data will suggest a buy of IBM over 133.09, with an upside target of n/a. The data also tells us to set a stop loss @ 132.83 in case the stock turns against the trade. 133.09 is the first level of resistance above 132.80, and by rule, any break above resistance is a buy signal. In this case, resistance 133.09 is breaking higher, a buy signal would exist.

IBM - (Short) Resistance Plan

Short under 133.09 target 123.29 stop loss @ 133.35
The technical summary data is suggesting a short of IBM as it gets near 133.09 with a downside target of 123.29. We should have a stop loss in place at 133.35 though. 133.09 is the first level of resistance above 132.80, and by rule, any test of resistance is a short signal. In this case, if resistance 133.09 is being tested, a short signal would exist.


IBM Long Term Analysis

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