IBM Flirting With Upper-End Of 6-Month Trading Range
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
International Business Machines Corp. (NYSE: IBM) shares were trading higher by $3.82 (2.3 percent) at $164.49 in Monday's session. The worst performing stock in the Dow Jones Industrial over the last two years in bumping up against some major resistance ahead of Monday afternoon's Q1 earnings report.
After a disastrous Q3 earning report on October 20, 2014, IBM gapped down from the $182 level to the $162 level in one week. A better than expected Q4 report on January 20, 2015, failed to excite investors, except for Warren Buffett who has been adding to his position during its recent decline.
Related Link: Will IBM Hit 5 Before Heading To 0? This Article Explains How
Since October 31, IBM has been in a well-defined trading range between its four-year low made in January at $149.52 and the high on October 31 at $165.59. Interestingly, the issue is making another attempt to breach the top of the range in today's session, as it reached $165.54 before retreating under $165.
To add further significance to this entire area, the highest closing price over this same period has been $164.40, which was its closing price on October 31.
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