As per my analysis & commentary in today’s video, the IBM active long swing trade hit & (so far) bounced off the 198.74 support following yesterday’s earnings release. With the stock positive today & a potential near-term selling climax, I am revising the suggested stop to any move below 198.70. Should the stock hold above the revised suggested stop & start to climb, I’ve added a second potential (not yet official) target around the 243 level. Previous & updated daily charts below.
IBM daily July 14th
IBM weekly July 14th
IBM daily July 23rd
FWIW- I’m not crazy about this trade at this time, especially in light of my current outlook & expection for the both the broad market & tech-heavy Nasdaq 100 (which has currently fallen back down to that key T1 first price target & support level which defines the bottom of the recent multi-month trading range, with the next sell signal still to come on a solid break below it).
However, support is support until & unless broken, so with the market at support & IBM making a successful test of support today while trading in the green on the heels of an earnings report that the stock market & tech sector had been fearing, I’d figure I’d give this trade just a bit more room on the stops.
As always, pass on trade ideas that don’t mesh with your unique risk tolerance, objectives, trading style, & outlook for that particular security. Also, suggested stops & price targets are just that, general suggestions. Always use stops & price targets that align with your own trading style, loss allowance, & preferred R/R ratio.