INTL BUSINESS MACHINES CORP is showing promising signs of setting up for a breakout.

Our stock screener has detected a potential breakout setup on INTL BUSINESS MACHINES CORP (NYSE:IBM). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:IBM.

Zooming in on the technicals.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 8 out of 10 to IBM. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, IBM is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, IBM did better than 71% of all other stocks.
• IBM is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so IBM is lagging the market slightly.
• IBM is an average performer in the IT Services industry, it outperforms 55% of 82 stocks in the same industry.
• In the last month IBM has a been trading in a tight range between 214.61 and 227.45.

Our latest full technical report of IBM contains the most current technical analsysis.

Why is NYSE:IBM a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:IBM has a 9 as its setup rating, indicating its current consolidation status.

IBM has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 222.95, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Of course, there are many ways to trade or not trade NYSE:IBM and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.