IBM (NYSE: IBM) on the Daily Chart has been in an uptrend since 28 October 2020 when it registered the low price at $105.9. This was followed by a series of higher tops and higher bottoms and on 6 January 2021 the IBM stock recorded the high price of $131.86.
By applying Oscillator Analysis to the price chart one can see that price is trading above the SMA 60 period Moving Average line, a fact which confirms the stock’s upward direction.
Technical Analysis
The Moving Average/Convergence Divergence (MACD) Oscillator is recording values above the zero line which hints to the bullish bias of the financial instrument.
Additionally, the Relative Strength Index (RSI) Oscillator registers values above the fifty line which indicates positive sentiment. All three technical indicators agree with the upward bias of the stock.
Three price targets may be calculated upon applying the Fibonacci tool to the price chart as follows:
- The first is estimated at $131.34 (161.8%).
- The second at $137.30 (261.8%).
- The third is projected at $146.95 (423.6%).
While the first target has already been breached, the IBM shares are currently trading above the uptrend line. Of course, supply and demand as well as the crowd sentiment will determine the future course of the shares.
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