The IBM Gem
Posted on Friday, February 20th, 2009 | In Market CommentaryIBM (NYSE:IBM) is one of those companies that just seem to be into everything.
They aren’t just a technology production or consulting company. They actually have salt, seawater, and rock specialists on hand. They are also involved in financial management, and business consulting.
And over the years they expanded globally, increasing share prices and profits.
Then came the financial crisis which sucker punched IBM shareholders in the face, twice. The effect? Take a look below…
Shares fell from nearly $130 to $70 – a 46% decline in a matter of only two months.
But since late November, IBM shares have been recovering and have even formed a nice little trading channel.
As you can see, this trading channel is still holding firm today. Interestingly enough, the 50-day moving average has also lined up with the bottom trading channel, forming a double-barreled support line.
Lastly, the Slow Stochastic indicator (at the bottom of the chart) is suggesting that shares are ripe for buying.
If IBM continues with this trend, buying shares today should be an easy way to make a little more than 10% in about two weeks flat.
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