IBM ends the day indecisive
International Business Machines Corporation (IBM) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, IBM finished the week 3.21% higher at 139.43 after gaining $0.64 (0.46%) today on high volume, slightly underperforming the Dow Indu. (0.54%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (IBM as at Mar 15, 2019):
Friday's trading range has been $1.10 (0.79%), that's below the last trading month's daily average range of $1.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IBM.
Three candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and two bearish patterns, the Bearish Hikkake Pattern and the Shooting Star. The last time a Shooting Star showed up on Tuesday, IBM actually gained 0.20% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 137.85 where further sell stops could get triggered. With prices trading close to this year's high at 140.49, upside momentum might speed up should the share be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for International Business. Out of 75 times, IBM closed higher 57.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after four trading days, showing a win rate of 53.33% with an average market move of 0.02%.