IBM dominated by bulls lifting the market higher throughout the day
International Business Machines Corporation (IBM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IBM finished the month -3.31% lower at 120.77 after gaining $1.02 (0.85%) today, performing in line with the Dow Indu. (0.85%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 119.78, the share confirmed its breakout through the previous session high after trading up to $1.42 above it intraday.
Daily Candlestick Chart (IBM as at Jun 30, 2020):
Tuesday's trading range has been $2.20 (1.85%), that's below the last trading month's daily average range of $3.21. 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 bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 122.86 (R1).
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for International Business. Out of 324 times, IBM closed lower 50.62% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 51.54% with an average market move of -0.06%.