IBM: Breakdown from Rectangle

  • Post author:

Trade Opportunity for IBM after break down from Rectangle which has been in consolidation mode for 2 months! IBM is on confirmed down trend as the stock is trading below 20D, 50D, 200D SMA. MACD Bearish Convergence. 2/5 EMA starts bearish trend.

Technical Analysis for IBM

IBM Dec12-2014

Fundamental Analysis for IBM

IBM Fundamental Analysis Dec12-2014

IBM PE Ratio Dec12-2014

Base on current chart pattern, IBM is suitable for trading. You will be DEAD if you use Value Investing method to invest in IBM now!

Original post by Marubozu from My Stocks Investing Journey.

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IBM: Trade Ideas

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IBM is going to announce quarterly earning on Jan 21 AMC. Expect some big move on Dow Jones Industrial and S&P500 when market opens on Jan 22 as IBM has very heavy weightage on these two indices.

There are a few trade ideas after the earning.

  • Iron Condor:  Sell Vega as IV percentile is high at 72.38%.
  • Short Vertical Put Spread: IBM has broken out from a Double Bottoms and tested the neckline at about $185. This is a reversal pattern and IBM may start an uptrend if there is no shock news from earning announcement.
  • Short Vertical Put Spread: If there is a gap down due to poor earning or poor outlook guidance, IBM will resume the down trend.

IBM Technical Analysis

IBM Jan 19-2014

IBM Implied Volatility

IBM IV Jan19-2014

IBM Fundamental

IBM Fundamental Analysis Jan19-2014


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Original post by Marubozu from My Stocks Investing Journey.

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