IBM oversold, potential rally comingEvery time the monthly RSI has dropped to todays levels over the last 16 years we have seen a rally. With a retrace of even the smallest run here (39.55%) we could expect a price target of 170. In consideration with the RHT acquisition this could be significantly higher. I don't usually chart off RSI alone so this is purely speculation. I'm not looking to trade options here but I'm buying the stock long.
IBM trade ideas
IBM - FREE MONEY!Dear Traders,
IBM has struck a deal to acquire cloud software company Red Hat for $34 billion.
IBM will pay $190 per share for the software company, which it described as the world’s leading provider of open source cloud software, a more than 60% premium to Red Hat’s closing stock price of $116.68 on Friday. Shares traded upwards of $175 in June, but disappointing earnings combined with a volatile market had seen the price drop sharply.
Here are the key points from the deal announcement:
IBM will acquire all of the issued and outstanding common shares of Red Hat for $190.00 per share in cash, representing a total enterprise value of approximately $34 billion.
JPMorgan advised IBM on the deal and provided most of the financing. Guggenheim Partners represented Red Hat on the deal.
IBM will remain committed to Red Hat’s open governance, open source contributions, participation in the open source community and development model, and fostering its widespread developer ecosystem.
IBM and Red Hat also will continue to build and enhance Red Hat partnerships, including those with major cloud providers, such as Amazon Web Services, Microsoft Azure, Google Cloud, Alibaba and more, in addition to the IBM Cloud.
Red Hat will join IBM’s Hybrid Cloud team as a distinct unit, preserving the independence and neutrality of Red Hat’s open source development heritage and commitment, current product portfolio and go-to-market strategy, and unique development culture.
Red Hat will continue to be led by Jim Whitehurst and Red Hat’s current management team. Jim Whitehurst also will join IBM’s senior management team and report to Ginni Rometty. IBM intends to maintain Red Hat’s headquarters, facilities, brands and practices.
“IBM will become the world’s #1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses,” Ginni Rometty, IBM chairman and CEO, said.
“Joining forces with IBM will provide us with a greater level of scale, resources and capabilities to accelerate the impact of open source as the basis for digital transformation and bring Red Hat to an even wider audience – all while preserving our unique culture and unwavering commitment to open source innovation,” Jim Whitehurst, president and CEO of Red Hat, said.
Let's talk about TA now:
Weekly RSI is OVERSOLD !
Daily looks superrr zweeeeet! I see a possible divergence!
Hourly chart confirms my Bullish Divergence.
This is free money.
Key resistance points: 132$ - 145$
MACD IBM May-Jun 2013 In the candlestick chart at the top you'll see daily interval prices of IBM corporation with a layover of the 12 and 26 period exponential moving averages. In the lower portion of the chart you'll see the MACD indicator, the slower 'trigger line' or 9 period Simple moving average, and the zero line around which the first two oscillate.
The typical default parameters for the MACD are most commonly 12/26/9, meaning the MACD plots the difference between the 12 and 26 (12-26) Exponential moving averages. The 9 parameter represents the 9-period Simple moving average of the MACD calculation.
IBM is Testing Major Support Level of the 18 Year TrendPrice is heading to final support level of the bullish channel, which spans all the way back to the year 2000. Today price fell by as much as 5%, as IBM Q3 report shows slowdown in revenue growth. With dividend yield at 4.3% and PE below 12, IBM looks more and more attractive as a long term investment. Nevertheless, price could fall further to the final support level, potentially to 130.00.
IBM - $178 Target maybe moreThe correction since March 2017 at IBM could be close to completion and reach a run-up to at least $ 178 if this movement instead of a wave 3 is only a wave (C). That would be a whopping 24% margin. A run-up through the turnaround range is supported by 61.8% of the previous wave (A) / 1.
There is a nice divergence in the RSI and MACD which confirm a trend change at the moment.
IBM gap fillingNYSE:IBM Hi guys I post my trading idea for IBM . I have the belief that IBM is going to fill the gap between the price levels of 17/4/2018 and today . The view came to me from the indicators i use is hopefull because ADX is aboce the bottom leves and +DI is at an uptrend , also RSI is at an uptrend and the price of IBM has to go higher to reach the levels of overbought levels of RSI . The market generally tend to fill those gaps everytime so i think that long trade at IBM with a take profit at 158$ is a good trade. Also the price didnt break down the level of the EMA(200) so as it hold the price above the EMA(200) it has a serious probability to go high again. Have fun !
IBM filling the negative gapHi guys , I post my trading idea for IBM. I think that IBM is going to fill the negative gap from 17/4/2018 the indicators I use signal me to go long at IBM , because ADX is at an uptrend and +DI is at neutral price levels , so I think that they will continue to overbought levels. RSI also is at probably high levels with a difference of 20 points from highest levels so the combination of those 2 indicators are good for a buy signal. Also the price levels of IBM didn't broke down the levels of EMA(200) and hold the price level above that median. So the price level gap of 17/4/2018 tends to be filled so a buy signal with a take profit at 158$ , I think is a good profit for that trade. Have fun guys !
IBM Seeking BalanceIBM was very stretched at the Warning-Line 1 and is now seeking balance.
So we go from extreme back to balance. It doesn't matter how you call it....Mean-Reversion, Action/Reaction or even manipulation...
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IBM pushing out of a down trend range150.60 is the post earnings high I am watching. Yesterday after hours we were close. This one looks primed to rally into earnings season. It had a nice pop off earnings and guidance last time so a run up here would be logical. Only thing likely hurting the stock is all the tariff talk.