International Business Machines Corporation (IBM) is a multinational information technology company that provides cloud hosting services, mainframe computers, supercomputers, artificial intelligence, and is a pioneer in computer hardware, middleware, and software. Founded more than 100 years ago, it also holds several thousand patents. IBM is listed on NYSE and is a component of DJI and S&P 500 under Information Technology.

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IBM started Dec 2021 with a Wyckoff sign of strength (SOS) rally that eventually hit a high at $135 on 5 Jan 2022. The rejection tail hinted weakness ahead and the price pulled back. However, despite the localized increase of volume on 25 Jan, the price was unable to break the previous high. The increase in effort did not result in substantial rally suggesting presence of supply, which was a demonstration of Wyckoff’s efforts vs results. This was confirmed by Wyckoff sign of weakness (SOW) to the downside. The price eventually found support around $114 on 24 Feb.

In the subsequent 8 months, IBM's price was moving sideways between $114 and $141. In fact, the price was forming higher lows and breaking above resistance until the gap down on 19 July. This was accompanied by a spike in volume suggesting the presence of supply. The price attempted another rally but it drifted down to retest low of $114.

The localized Wyckoff spring action on 13 Oct started a momentous Wyckoff sign-of-strength rally that committed above $141. It was the best rally so far. The rally temporarily stopped on 23 Nov and formed a Wyckoff backup (BU) that lasted around 3 weeks. This was followed by a rejection tail on 13 Dec and a big down bar with localized increase in volume.

Bias

Slightly bullish. According to the Wyckoff method, IBM is now in the backup range between $138 and $150, near completion of the accumulation structure. There is no threatening supply to push the price down. It will likely attempt to break above $150 and begin phase E markup to all time high.

If price broke below $138, it will likely retest support around $131.

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