After a few weeks of IBM shares falling, there is a chance of bounce and a short-term trend change. Technological companies fell the most from stock market in October.
And so is the giant in its field – IBM (International Business Machines Corporation). Decreases were also due to the 3Q results, which, though slightly above expectations, were still unsatisfactory for investors and traders. In the next quartal (4Q) analysts are predicting much better results.
In the last week, IBM shares are growing. The market so bounced off the strong S / R band (orange), and close to it is a strong trendline from the past. The RSI oscillator was at oversold levels and rotated upwards. We are currently trading over short-term EMAs, which could indicate a positive signal and a short-term trend change.
Another reason why stocks are rising in recent years is the upcoming Ex / date before dividend payment. This date is set for 8 November. After a payout, a downside may occur as the investor gets his dividends and then has the option of wanting to get rid of shares.
If the market breaks the short-term trendline – red, it will also be a positive signal. Strong support remains the orange band and the long-term trendline (from the bottom). If the market would break it, we would be probably much lower.
This analysis serves only for educational purposes. It cannot be considered as investing advice. In trading, I recommend that you adhere to strict money and risk management.