Stock of the day: IBM

By Tomasz Wisniewski|

Published: February 22 2023, 13:24 GMT+0

Stock of the day: IBM


Yesterday’s downturn in the US stock market created some valuable sell signals, including one that can be found on the chart of IBM. Since mid-December, IBM has been in a downtrend, which is indicated on the chart as a black channel down formation.

Since reaching a high on December 13th, IBM has formed two trend continuation patterns, both of which are flags. The second flag ended with a significant breakout to the downside just yesterday. When the lower line of the flag was broken, it signaled a sell with a first target on the lower line of the channel down formation.

Although the negative sentiment in the long-term will be canceled when the price breaks the upper line of the channel down formation, in the short-term, it could be introduced if the price climbs back above the green, mid-term downtrend line. Given the current sentiment, both bullish scenarios appear unlikely, and IBM should show new yearly lows soon.