IBM dominated by bears dragging the market lower throughout the day
International Business Machines Corporation (IBM) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IBM finished the week 1.63% higher at 140.56 after tanking $2.31 (-1.62%) today, significantly underperforming the Dow Indu. (-0.58%). This is the biggest single-day loss in over three weeks. The last time we've seen such an unusually strong single-day loss on December 30, 2019, IBM actually gained 0.93% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 142.15, the share confirmed its breakout through the prior session low after trading up to $1.69 below it intraday.
Daily Candlestick Chart (IBM as at Jan 24, 2020):
Friday's trading range has been $3.46 (2.41%), that's far above the last trading month's daily average range of $1.78. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for IBM.
One bearish candlestick pattern matches today's price action, the Black Candle.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 136.78.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for International Business. Out of 497 times, IBM closed higher 55.53% 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 10 trading days, showing a win rate of 55.33% with an average market move of 0.45%.