Bearish Island Top Forms in IBM Shares
A rare but very bearish Island Top has formed in IBM shares today. Earlier in the week, the shares gapped up through $65 higher, traded at new highs for two days in the $168-$172 range then gapped back down under $165 today. This combination of an exhaustion gap upward and a breakaway gap downward indicates a major top has formed for the shares. It also means that anyone who bought Wednesday or Thursday is now offside and underwater, a potential source of selling pressure. Initial downside support could appear near $161.68 or $158.75, 38% and 50% retracements of the recent uptrend.
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.