Wednesday, January 15, 2014

Annual Trading Forecast on IBM (2014)

International Business Machines stock (NYSE:IBM) has been rallying since December 2013. The price has formed a Double Bottom pattern (a “W’ shape), which means a true bottom has been found at those extreme ends, and the price ought to be going upwards.

In the chart, the EMA 20 has crossed the EMA 50 to the upside, as a confirmation of the new bullish bias that was started last month. This current pullback in the price is thus a good opportunity to go long dearer. The ultimate target for the year 2014 is at the resistance level of 200.00. Though, there is a possibility that the level could also be breached to the upside.

Conclusion: IBM stock is supposed to keep on going upwards for most part of this year, although this could be accompanied by occasional large pullbacks in the market. This would cause temporary negativity for bulls. Negativity is nothing new in trading – rarely does a week or month go perfectly. But overall, one would attain some profits. Every speculator should be aware of the limitations of their orders and know that they need to attain agreeable parameters of the limitations. In addition, any negativity should be treated and taken as one of those orders that have the potential of bringing positivity.

This forecast is ended with the quote below:

“Were currencies cyclical?  Were stocks and bonds cyclical? Did anyone really know? Do stocks have cycles? Maybe sectors have cycles. Would a natural gas cycle be the same as a crude oil cycle? I'll leave such decisions to scientists and mathematicians to figure out. While they are figuring it out, I'd rather figure out how to take money from the markets.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders

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