Stock of the day: IBM

Stock of the day: IBM
In today’s analysis, we will come back to IBM which we previously analyzed on February 22. Back then, the price was in the downtrend and we were negative, seeing a further bearish potential. This is how we concluded the last piece on IBM:
“Although the negative sentiment in the long-term will be canceled when the price breaks the upper line of the channel down formation, in the short-term, it could be introduced if the price climbs back above the green, mid-term downtrend line. Given the current sentiment, both bullish scenarios appear unlikely, and IBM should show new yearly lows soon.”

Indeed, we did see the new lows soon afterwards. The price actually dropped instantly and was plummeting until March 15, when we finally saw a bounce. If we take a look at the weekly chart, the reason for the bounce is clear. The price met the long-term up-trendline connecting lows from 2020 and 2022. A bounce from this line is a proper signal to go long in the long-term. The candle from this week serves as an additional confirmation. In my opinion, the sentiment on the IBM is positive.
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