IBM reported earnings last night that did not live up to the huge expectations. Thus, a pull back is expected but it was already shown in the charts. Both the daily and weekly charts are negatively diverged forecasting a top. Note the rising blue wedge that signals a reversal. Although all the blue lines show the negative divergence which projects a spank down, note the green lines that show some subtle momo over the more recent time frame. Thus, this chart is an ideal candidate for an M Top. The pull back in price should fill the gap and test support at 182; support also exists at 173. After the pull back price should make an attempt to come back up for a matching high but at that time, if it occurs, will only provide a second chance to exit. Lower prices are expected for the weeks and months ahead with a significant top in place now. This information is for educational and entertainment purposes only. Do not trade based on this information. Consult your financial advisor before making any investment decision.
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