IBM International Business Machines 'Big Blue' Weekly Chart Head and Shoulders Patterns

IBM receives a negative divergence smack down one year ago and another in October 2012. Those two form the left shoulder and head, respectively. In January, Big Blue has produced a right shoulder. Referencing the red H&S with head at 210 and neckline at 185, the lower target is 160 should 185 fail.  The blue H&S has a head at 210 and neckline at 180 which would lead to the 150 support.  In a nutshell, if IBM loses 185, the landing zone at 150-160 is in play. The 20-week MA rolled under the 50-week MA which is bearish. Watch to see if the RSI, stochastics and/or money flow fall under the 50% level to signal more downside ahead, or not. Last week IBM announced that they will offer cheaper products and services to grow the customer base, just like AAPL moving into more inexpensive phones. This is all well and good for these two tech heavyweights, however, the cheaper products will create lower margins, hence, stock weakness. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.