IBM may rise to 246.00 - 249.80

Our pivot point stands at 223.7.

Our preference

The upside prevails as long as 223.7 is support.

Alternative scenario

The downside breakout of 223.7 would call for 217.8 and 214.1.

Comment

The RSI is trading above 70. This could mean that either the stock is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the stock is above its 20 and 50 day moving average (respectively at 220.5055 and 205.7242). Finally, IBM is trading above its upper Bollinger band (standing at 231.68).

Supports and resistances

253.5 **

249.8 *

246 **

242.2

234.3 (USD-last)

226.2

223.7 **

217.8 *

214.1 **

Number of asterisks represents the strength of support and resistance levels.