"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 12 hours Institutional Investors Hold A Lot More Crypto Than You Think
  • 13 hours U.S. Treasury Yields Could Be About To Break Out
  • 14 hours Tesla Stock Stumbles On Model 3 Cancellations
  • 15 hours Yuan Rebounds At The Expense Of The U.S. Dollar
  • 17 hours Iraq Unplugged: No Internet, No Protests, No Money
  • 19 hours The Tariff War Could Spark A Debt Crisis In China
  • 1 day Gold Selloff Continues As Dollar Climbs Higher
  • 1 day Gold Investors In A Frenzy Over Sunken Russian Warship
  • 2 days The New King Of Electric Cars
  • 2 days BlackRock Goes Bitcoin
  • 2 days U.S. Banks See Best Earnings Report In Years
  • 2 days The Case For Gold Is Not About Price
  • 2 days Stock Market Sentiment Turns Bullish
  • 2 days What Is Bitcoin Really Supposed To Be?
  • 2 days The Surprising Media Giant Taking On Netflix
  • 3 days Cybersecurity Stocks Are Red-Hot As Election Looms
  • 3 days Americans Grow Weary Of U.S. Trade Policy
  • 3 days What Putin Really Wants From Trump
  • 3 days Europe’s EV Sales Growth Is Slowing
  • 3 days The Looming "Hyper-War"
Chinese IPO Fervor Slows As Xiaomi Disappoints

Chinese IPO Fervor Slows As Xiaomi Disappoints

The Chinese IPO space was…

3 Reasons Small-Cap Stocks Are Booming

3 Reasons Small-Cap Stocks Are Booming

As major market indexes waiver,…

The Biggest Winners Of Q2 Earnings Season

The Biggest Winners Of Q2 Earnings Season

The second quarter of 2018…




My goal is to establish the most likely path that the price of a particular asset will undertake and profit through ETF instruments both on…

Contact Author

IBM: Building a Base

From the July high we can say that the decline has unfolded a 3-wave down leg hence the current down leg is either wave (3) of a larger impulsive decline or the wave (C) of a completed Zig Zag or the wave (W) of a larger Double Zig Zag. Therefore Elliott Wave wise I don't know if the correction is over, but what has a great importance is that the price action of the last five weeks seems to be forming a "base" that could allow to fill some of the space of the huge gap down of the third week of October hence a retracement of the last down leg would be doable (Either as a wave 4 or wave X).

IBM Weekly Chart
Larger Image

In the daily chart we can see that it is poking its "head" above the trend line resistance of the last lower highs with two consecutive trading sessions above both the 10 d ma and 20 d ma.

Tight Bollinger Bands are suggesting that a large move is in the cards.

The Stochastic has room to the upside before entering the overbought zone.

Levels above:

Pivot Resistance = 165.66
Gap 1 Fill = 169.10
50 dma= 171.418
0.382 R - 0.5 R = 173.27-177.43

Support: 10 dma = 161.975

IBM Daily Chart
Larger Image

Regarding the short-term time frame, im my opinion, it seems probable that it is unfolding a Zig Zag with the wave (C) being established with a thrust following a Triangle.

The corrective structure is suggesting that we don't have a major bottom but the pattern can remain constructive as it can morph in a much larger Double Zig Zag.

IBM 15-Minute Chart
Larger Image


Back to homepage

Leave a comment

Leave a comment