IBM is leading the Dow Jones Industrials lower as the week comes to an end. Quite a reversal from last week’s move into new 2019 high territory. Last Friday, as the post earnings surge(July 17) hit new highs, IBM printed an ugly key downside reversal. The stock has been very weak since but was able to hold onto the July lows. Today, with the help of a 3% drop, Big Blue is blowing out last month’s low. IBM is now working on a huge downside reversal on the monthly charts.
We expect more downside in the near term. A retest of the 200 day moving average($133.00) appears likely. Considering the intense overhead pressure, a hold here would be impressive.
No position in IBM at this time.