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January 23 Chart of the Day - IBM

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IBM is making headlines this week with respect to its watsonx Generative AI.  And looking at their chart it seems as if the sleeping giant has awoken...

In looking at the monthly chart from a price action technical analysis perspective price has been making a series of higher highs and higher lows since the global pandemic started back in 2020 and a definitive low was set just under $100.

Trading around $173.50 earlier today the chart has been non-stop bulls the last three months and is fast charging towards some potential overhead resistance in the form of previous support/resistance and a bear 78.6% Fibonacci retracement.

Price hasn't been at these levels since 2017.  Prior to that their $206.22 all time high (ATH) was set in 2013.

Like many global companies IBM has weathered numerous storms, re-invented itself a few times (keep in mind IBM stands for International Business Machines and was once famous for making typewriters), and is still a force across the globe.

ChartPros founder Tom Winterstein often tells stories about when he was a summer intern at IBM back in 1985 helping make printed circuit boards in Endicott NY during the personal computer explosion.  Both IBM and Tom have come a longs ways since then!

Down on the weekly chart we can see just how close price is coming to that previously mentioned possible overhead resistance.  Also, we've added an impulse bull Fibonacci with potential pull back long levels for both traders and investors to develop their plans from.

With earnings scheduled for after market close on 1/24/2024 it will be interesting to see if any news can provide a spark (in either direction) for price...

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

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