International Business Machines is the top-performing member of the Dow Jones Industrial Average this year, and some traders may think it will keep climbing.
The first pattern on today’s chart is the push above $269 last week. The IT company pulled back after hitting that record peak, but found support at its rising 21-day exponential moving average (EMA).
It also closed above its 8-day exponential moving average (EMA), which is additionally above the 21-day EMA. Those signals may be consistent with a short-term uptrend.
Next, IBM is above $261.64, the previous weekly closing high from early March. That may suggest a breakout is being attempted.
Third, MACD is rising.
Fourth, you have some longer-term patterns. The 50-, 100- and 200-day simple moving averages (SMAs) are in a potentially bullish sequence, with faster SMAs above the slower. IBM also held its January low in April, avoiding the deeper declines experienced by the broader market.
Those patterns may be consistent with long-term strength.
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Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
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TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
The first pattern on today’s chart is the push above $269 last week. The IT company pulled back after hitting that record peak, but found support at its rising 21-day exponential moving average (EMA).
It also closed above its 8-day exponential moving average (EMA), which is additionally above the 21-day EMA. Those signals may be consistent with a short-term uptrend.
Next, IBM is above $261.64, the previous weekly closing high from early March. That may suggest a breakout is being attempted.
Third, MACD is rising.
Fourth, you have some longer-term patterns. The 50-, 100- and 200-day simple moving averages (SMAs) are in a potentially bullish sequence, with faster SMAs above the slower. IBM also held its January low in April, avoiding the deeper declines experienced by the broader market.
Those patterns may be consistent with long-term strength.
Check out TradingView's The Leap competition sponsored by TradeStation.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.