In my humble opinion there was a sort of overreaction triggered by short selling yesterday upon IBM's earnings call. Numbers were not great and guidance was lowered. Nevertheless, the blue chip has created a stronger position to capture growth in the IT business related to cloud computing, cybersecurity, and artificial intelligence technologies (15% yoy growth).
I predict a short-term movement upwards shortly after the consolidation period or even today. Do not miss the rally to the support/demand zone, which serves as moderate price level for the IBM stock. The average lowest price target by analysts is $152.00.
However, there is also a strong possibility of decline if bears attack again. Evaluate a stop loss that take into account a false break out scenario that may likely bust the upward breakout in direction to the support zone.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
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I get out yesterday. Maybe you consider the fibonacci support as next support level for breakout. However, market is choppy. So blue chips are drifting with the current.