International Business Machines IBM-N (Wednesday’s close US$140.02) rallied from $90.56 in March, 2020 to $135.86 in June of the same year (A-B), settled in a trading range mostly between $115 and $135 (dotted lines), and after a breakout to $152.84 in June, 2021 (C), it stayed in another range mostly between $115 and $145 (dashed lines).
The recent move above the second range suggests a breakout and the start of an uptrend toward higher targets (D); a sustained rise above $150 would confirm it.
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. IBM is currently in the midst of a minor correction toward the 40wMA; only a sustained decline below the Average (currently near $135) would be negative.
A rise above $150 would support Point & Figure targets of $170 and $185. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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Monica Rizk