IBM runs into sellers again around 113.15
International Business Machines Corporation (IBM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, IBM finished Thursday at 112.89 gaining $7.04 (6.65%) on low volume, slightly outperforming the Dow Indu. (6.38%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 112.48, International Business confirmed its breakout through the prior session high after trading up to $0.67 above it intraday.
Daily Candlestick Chart (IBM as at Mar 26, 2020):
Thursday's trading range has been $7.58 (7.09%), that's slightly above the last trading month's daily average range of $7.10. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IBM.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 115.76 (R1). After having been unable to move above 112.48 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 113.15. The last time this happened on March 18th, IBM lost -3.10% on the following trading day.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for International Business. Out of 550 times, IBM closed higher 50.73% 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 three trading days, showing a win rate of 52.18% with an average market move of -0.00%.