September 12 Chart of the Day - IBM
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
IBM Corp. (IBM) is making headlines today as its stock price is making fresh new all time highs for the first time in over a decade. This may come as a surprise to many as the global IT giant seemingly had been an industry laggard for a very long time.
Like many global companies IBM has weathered numerous storms, re-invented itself a few times (keep in mind IBM stood for International Business Machines and was once famous for making typewriters), but is still a force across the globe.
ChartPros founder Tom Winterstein often tells stories about when he was a college 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 long ways since then!
We have featured over 275 Charts of the Day since May 2023 and teach Price Action Technical Analysis Trading for FREE to traders who join our Highly Rated Trade Room.
Monthly Chart
On the monthly chart we can see that this month price is reaching unchartered territory after breaking out above $200 and a trend line that previously held.
Now, with no previous price history at these levels price is going through what we like to call a "discovery phase" to create new structure. As traders we're limited to estimating potential upside targets using only price action tools Trend and Fibonacci as shared for free in our Trading All Time Highs webinar replay.
Weekly Chart
On the weekly chart we can price bumping up against potential resistance in the form of a multi year trend line. It will be interesting to see whether this week's candle closes above or below that gray trend line.
Trading around $210 earlier today price may have its sights set on the $240 area or ultimately even higher. Should price decide to fade from here we've identified potential pull back long levels of interest but nothing above the $195-200 zone.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
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.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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