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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