IBM breaks below Thursday's low
International Business Machines Corporation (IBM) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IBM finished the week 1.21% higher at 118.39 after losing $0.73 (-0.61%) today, underperforming the Dow Indu. (-0.04%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 118.97, the share confirmed its breakout through the prior session low after trading up to $1.38 below it intraday.
Daily Candlestick Chart (IBM as at May 22, 2020):
Friday's trading range has been $1.87 (1.57%), that's below the last trading month's daily average range of $2.57. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IBM.
One bearish candlestick pattern matches today's price action, the Black Candle.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to May's high at 124.32, upside momentum could accelerate should International Business mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for International Business. Out of 505 times, IBM closed higher 55.25% 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 54.06% with an average market move of 0.34%.