IBM breaks back above 100-day moving average
International Business Machines Corporation (IBM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, IBM ended Wednesday at 124.22 gaining $1.78 (1.45%), significantly outperforming the Dow Indu. (0.13%). Closing above Tuesday's high at 123.40, the market confirmed its breakout through the prior session high after trading up to $2.42 above it intraday.
Daily Candlestick Chart (IBM as at Sep 16, 2020):
Wednesday's trading range has been $3.11 (2.53%), that's slightly above the last trading month's daily average range of $2.41. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IBM.
The share managed to close back above the 100-day moving average at 123.32 for the first time since September 3rd. When this moving average was crossed above the last time on July 14th, IBM gained 1.99% on the following trading day. Unable to break through the key technical resistance level at 125.30 (R1), the stock closed below it after spiking up to 125.82 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for International Business. Out of 76 times, IBM closed higher 59.21% 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 57.89% with an average market move of 0.73%.