IBM: Attention! First signs of the end of the retracement!
International Business Machines, abbreviated IBM and nicknamed "Blue Green", the large multinational computer technology and consulting corporation based in Armonk, New York, has a CLEARLY BULLISH technical aspect in its main time frames.
During 2024 it accumulated a rise of almost 50% when it reached the 239 area on December 9. Since then the price took a break and began a retracement phase that took it to the 215 area (61.8% Fibonacci).
--> What situation is it in now?
If we look at the chart, last Friday the price showed us the first 2 bullish warnings (Bull), indicating that the END of the retracement could be very close!!
--> What areas do we have to watch?
An upward break of the 227 area would indicate the END OF THE REVERSE and therefore, a new attack on its historical highs. But if the price loses the 214, it could easily take it towards the 204 area.
--> Is there any risk nearby?
Yes. Wednesday 29th presents results and if there are negative surprises, the price could fall strongly towards the 204 area, putting its medium-long term bullish trend at risk.
If our profile is CONSERVATIVE I would stay out of the value until the results are published, but if we have an AGGRESSIVE profile, we could follow the following strategy.
--------------------------------------
Strategy to follow:
ENTRY: We will open 2 long positions if the H4 candle closes above 227
POSITION 1 (TP1): We close the first position in the 238 area (+4.8%)
--> Stop Loss at 214 (-5.7%).
POSITION 2 (TP2): We open a Trailing Stop type position.
--> Initial dynamic Stop Loss at (-5.7%) (coinciding with the 214 of position 1).
---We modify the dynamic Stop Loss to (-1%) when the price reaches TP1 (238).
-------------------------------------------
SET UP EXPLANATIONS
*** How do we know which 2 long positions to open? Let's take an example: If we want to invest 2,000 euros in the stock, what we do is divide that amount by 2, and instead of opening 1 position of 2,000, we will open 2 positions of 1,000 each.
*** What is a Trailing Stop? A Trailing Stop allows a trade to continue gaining value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a certain distance. That certain distance is the dynamic Stop Loss.
-->Example: If the dynamic Stop Loss is at -1%, it means that if the price drops by -1%, the position will be closed. If the price rises, the Stop Loss also rises to maintain that -1% in the rises, therefore, the risk is increasingly lower until the position becomes profitable. In this way, very solid and stable price trends can be taken advantage of, maximizing profits.
During 2024 it accumulated a rise of almost 50% when it reached the 239 area on December 9. Since then the price took a break and began a retracement phase that took it to the 215 area (61.8% Fibonacci).
--> What situation is it in now?
If we look at the chart, last Friday the price showed us the first 2 bullish warnings (Bull), indicating that the END of the retracement could be very close!!
--> What areas do we have to watch?
An upward break of the 227 area would indicate the END OF THE REVERSE and therefore, a new attack on its historical highs. But if the price loses the 214, it could easily take it towards the 204 area.
--> Is there any risk nearby?
Yes. Wednesday 29th presents results and if there are negative surprises, the price could fall strongly towards the 204 area, putting its medium-long term bullish trend at risk.
If our profile is CONSERVATIVE I would stay out of the value until the results are published, but if we have an AGGRESSIVE profile, we could follow the following strategy.
--------------------------------------
Strategy to follow:
ENTRY: We will open 2 long positions if the H4 candle closes above 227
POSITION 1 (TP1): We close the first position in the 238 area (+4.8%)
--> Stop Loss at 214 (-5.7%).
POSITION 2 (TP2): We open a Trailing Stop type position.
--> Initial dynamic Stop Loss at (-5.7%) (coinciding with the 214 of position 1).
---We modify the dynamic Stop Loss to (-1%) when the price reaches TP1 (238).
-------------------------------------------
SET UP EXPLANATIONS
*** How do we know which 2 long positions to open? Let's take an example: If we want to invest 2,000 euros in the stock, what we do is divide that amount by 2, and instead of opening 1 position of 2,000, we will open 2 positions of 1,000 each.
*** What is a Trailing Stop? A Trailing Stop allows a trade to continue gaining value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a certain distance. That certain distance is the dynamic Stop Loss.
-->Example: If the dynamic Stop Loss is at -1%, it means that if the price drops by -1%, the position will be closed. If the price rises, the Stop Loss also rises to maintain that -1% in the rises, therefore, the risk is increasingly lower until the position becomes profitable. In this way, very solid and stable price trends can be taken advantage of, maximizing profits.
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.
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.