IBM may rise to 205.40 - 209.10

Our pivot point stands at 185.2.

Our preference

The upside prevails as long as 185.2 is support.

Alternative scenario

The downside breakout of 185.2 would call for 179.4 and 175.7.

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 trading above both its 20 and 50 day moving average (respectively at 184.007 and 175.8758).

Supports and resistances

212.8 **

209.1 *

205.4 **

201.9

192.14 (USD-last)

187.7

185.2 **

179.4 *

175.7 **

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