It Was Found That IBM Could Ride Blockchain Craze To New Highs
The IBM is finding a pal in the Blockchain craze. What is the reason behind it? Know all the details.
What Is The Current Craze?
Surely, the Dow component International Business Machines Corporation could emerge as the financial market’s blockchain lifting the stock well above $ 200 to all-time highs. Here the company has already captured the industry’s top slot according to a survey of IT professionals but the starry-eyed traders have chosen to ignore the achievement instead throwing speculative capital at beaten down microcaps transformed overnight into quasi-blockchain investors
It is therefore seen as a major move with the shares of Big Blue gaining in less than 6% despite its blockchain growth grinding through a basing pattern in the lower half of a brutal five-year trading range, as the stock has however flown out of the gate hitting a nine-month while surpassing the prior quarter’s performance, where this bullish action bodes well which could ignite a euphoric burst into the $ 170s especially if the 106-year-old technology giant outlines initiatives to further capitalize on its powerful positioning.
The IBM Long-Term Chart (1993 – 2018)
According to the chart, the stock fell to 27-year support near $ 9.50 in the third quarter of 1993 after which it bounced strongly ending a seven-year downtrend breaking out above the prior decade’s peak in 1997 while posting gains above 300% before topping out at $ 138.35 in July 1999. Thereafter a narrow trading range into the new millennium generated two failed breakout attempts followed by a major decline ended at a four year low in the mid -$ 50s in October 2002.
Thereafter a bounce into the mid-decade stalled at the midpoint of their downtrend in 2004, as the 2007 breakout ended within eight points of 1999 high just one year later. This is where it marked the top ahead of a vertical plunge that posted a higher long term low in November 2008. Thereafter the stock recovered quickly into the new decade completing a round trip into the 2008 high breaking out in 2011.
As it was observed, the momentum stalled above $ 200 in 2012, generating a two year top followed by a 2014 breakdown that dumped the stock to a six-year low in early 2016. Therefore a bounce into February 2017 ended at the 6.18 Fibonacci sell-off retracement level in the low- $ 180s giving away to a year of mixed action that has ignored the roaring bull market. It was then that monthly stochastics ended a six-month sell cycle while the bounce into January has lifted the indicator just above the panel midpoint. Thereby it is suggested that the bulls will retain control into the second quarter.
The IBM Short-Term Chart (2015 – 2018)
However, it is found that in this context there is a Fibonacci grid stretched across the decline and well into 2016 that organizes price action highlighting tough resistance just above $ 180 where they run up into early 2017 filled what was a huge 2014 gap at that level thereby absorbing supply while raising those odds that the stock will then eventually break out above that barrier. Herby mixed sentiment should improve rapidly once that happens to lift the stock quickly above $ 200 and into a test of the bull market high at $ 215.90.
While the On balance volume entered a multi-year distribution wave in 2012, it has finally hit the bottom in the first quarter of 2016. Herby accumulation since that time has failed to match price action signaling deep investor and institutional mistrust. Thereby conversely this could signal an opportunity for bottom fishers and value-oriented players’ willing to buy and hold for several years at a minimum
Thereafter traders should surely watch price action around the April 2017 gap after earnings with a buying spike above $ 170 clearing the barrier while generating the momentum needed for a rally into resistance at $ 180, and meanwhile, a sell the news reaction could bring January’s unfilled gap between $ 154 and $ 156 into paly while also testing 50- and 200- day exponential moving average support. Hereby it is in turn that price zone should generate a low-risk buying opportunity for long term positions.
The Bottom Line About IBM
Hence it was found that IBM could surely offer an outstanding opportunity for blockchain buyers wanting to escape the industry’s high volatility as well as a growing roster of shady dealers. It is where the industry is being found reliable by the tech giants, as they offer a secure technology underneath it. What more to say about the applications of blockchain technology?