NYSE:IBM may be ready to breakout.

We've identified INTL BUSINESS MACHINES CORP (NYSE:IBM) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NYSE:IBM for further developments.

Technical Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall IBM gets a technical rating of 10 out of 10. Both in the recent history as in the last year, IBM has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, IBM did better than 88% of all other stocks. We also observe that the gains produced by IBM over the past year are nicely spread over this period.
• IBM is part of the IT Services industry. There are 86 other stocks in this industry. IBM outperforms 80% of them.
• IBM is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so IBM is lagging the market slightly.
• In the last month IBM has a been trading in a tight range between 178.75 and 188.95.

For an up to date full technical analysis you can check the technical report of IBM

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:IBM currently has a 9 as setup rating:

Besides having an excellent technical rating, IBM also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 187.65. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 184.86, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:IBM

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.