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May 15, 2006
IBM Holds Range Support
The Nasdaq and tech stocks bore the brunt of recent selling pressure and led the way lower over the last few days. Even though IBM is not part of the Nasdaq, I consider it a key tech stock and am impressed with its ability to hold firm last week. The stock formed a triangle over the last few months and remains above support at 80.5. I still find this chart bearish overall become of the large gap and resistance around 85-86. However, continued firmness and a nice breakout at 84.5 could not be ignored and I would then turn bullish. A break below 81 would signal a continuation lower and this would be bearish for the stock, the Nasdaq and techs.
Posted by Arthur B. Hill at May 15, 2006 03:16 PM