IBM trade ideas
IBM falling out of bear flag channelIBM has been in a classic bear flag channel for a few weeks. It looks like we're breaking downwards now to complete the bear flag pattern.
I'm looking for a drop of about $40 from the top of the channel to somewhere in the $90-100 range. This is consistent with the methodology of the breakout from a flag is about equal to the price move leading to the flag. I think that this is a reasonable area to look for bullish signals after the dust has settled from the Red-Hat merger.
IBM poised for new low?IBM usually bounces up twice before setting a new low. Bought various puts after SPX gap close this morning, decided to keep this one for another week. Target is $112.
If you want to get greedy, $105 marks the double bottom, from Jan 2016, would recommend Jan puts.
Balance sheet already looks like crap, and they're going to overpay for RHT? Not even sure how they're going to come up with $34B in CASH, but way over payment for a company trading at over 60x P/E. If they go through with it, say goodbye to dividends. I bet they nix the deal in January, and the stock goes back up. Of course, they'll get sued though.
IBMDown trend + get Flag
target 96
strike for option trader
Symbol : IBM
Option Type : PUT
Strike : 110
Price : 0.21$
Expiry Date : 28 DEC
IBM In midterm, still in downtrend?i suppose in this downtrend, maybe IBM take months to have a better price.
IBM 5 WEEK SYMMETRICAL TRIANGLE REVERSALIBM 5 WEEK SYMMETRICAL TRIANGLE REVERSAL PATTERN FORMED, AND BREAKOUT HAPPENED.
PROFIT TARGET: 134
STOP LOSS: 123
IBM Testing Old Daily level 121.9IBM just tested 121.9, which is a daily level from back in 2010, having lost this level yesterday. It's in a downward wedge at the moment, likely to bounce off the top of the wedge or the level and come back down.
IBM Weekly analysisWith a typical sell on news on top on a market selloff IBM broke down the 122-131 OB that contains the biggest consolidation period in price
i've drawn the most probable scenario where price will assess the mentioned OB as resistance.
STRATEGIES RECCOMENDED
1. If price closes weekly above 123 it will create a SFP signaling LONG.
2. If you were SHORT you can move you SL to above 131 and keep an eye to the SFP
I am giving a neutral calification just because in case you want to play it at tomorrow open there is not trade with a decent RR.
IBM Notessweeper alert yesterday:
10/31/2018 7,601 IBM JUN 2019 120.00 CALLS BOUGHT @6.04
Buyers stepping into IBM with a $4.5 million + bull bet here
IBM oversold, potential rally comingEvery time the monthly RSI has dropped to todays levels over the last 16 years we have seen a rally. With a retrace of even the smallest run here (39.55%) we could expect a price target of 170. In consideration with the RHT acquisition this could be significantly higher. I don't usually chart off RSI alone so this is purely speculation. I'm not looking to trade options here but I'm buying the stock long.
IBM - FREE MONEY!Dear Traders,
IBM has struck a deal to acquire cloud software company Red Hat for $34 billion.
IBM will pay $190 per share for the software company, which it described as the world’s leading provider of open source cloud software, a more than 60% premium to Red Hat’s closing stock price of $116.68 on Friday. Shares traded upwards of $175 in June, but disappointing earnings combined with a volatile market had seen the price drop sharply.
Here are the key points from the deal announcement:
IBM will acquire all of the issued and outstanding common shares of Red Hat for $190.00 per share in cash, representing a total enterprise value of approximately $34 billion.
JPMorgan advised IBM on the deal and provided most of the financing. Guggenheim Partners represented Red Hat on the deal.
IBM will remain committed to Red Hat’s open governance, open source contributions, participation in the open source community and development model, and fostering its widespread developer ecosystem.
IBM and Red Hat also will continue to build and enhance Red Hat partnerships, including those with major cloud providers, such as Amazon Web Services, Microsoft Azure, Google Cloud, Alibaba and more, in addition to the IBM Cloud.
Red Hat will join IBM’s Hybrid Cloud team as a distinct unit, preserving the independence and neutrality of Red Hat’s open source development heritage and commitment, current product portfolio and go-to-market strategy, and unique development culture.
Red Hat will continue to be led by Jim Whitehurst and Red Hat’s current management team. Jim Whitehurst also will join IBM’s senior management team and report to Ginni Rometty. IBM intends to maintain Red Hat’s headquarters, facilities, brands and practices.
“IBM will become the world’s #1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses,” Ginni Rometty, IBM chairman and CEO, said.
“Joining forces with IBM will provide us with a greater level of scale, resources and capabilities to accelerate the impact of open source as the basis for digital transformation and bring Red Hat to an even wider audience – all while preserving our unique culture and unwavering commitment to open source innovation,” Jim Whitehurst, president and CEO of Red Hat, said.
Let's talk about TA now:
Weekly RSI is OVERSOLD !
Daily looks superrr zweeeeet! I see a possible divergence!
Hourly chart confirms my Bullish Divergence.
This is free money.
Key resistance points: 132$ - 145$
IBM Short play : Closed out short position+100% short position posted previously. Note the tightened trading ranges as of the last two trading days with slowing momentum. Possible reversal here. IBM also reporting on Tuesday, so should see significant volatility.
Took profits.
INTERNATIONAL BUSINESS MACHINES CORPORATION - NASDAQRising Wedge Pattern
Analysis in the chart
Good luck guys!
IBM weekly chart
There was a hard break in the horizontal support. In the short term, it may go below the trend. He has to climb over $ 135 again for ascension.
MACD IBM May-Jun 2013 In the candlestick chart at the top you'll see daily interval prices of IBM corporation with a layover of the 12 and 26 period exponential moving averages. In the lower portion of the chart you'll see the MACD indicator, the slower 'trigger line' or 9 period Simple moving average, and the zero line around which the first two oscillate.
The typical default parameters for the MACD are most commonly 12/26/9, meaning the MACD plots the difference between the 12 and 26 (12-26) Exponential moving averages. The 9 parameter represents the 9-period Simple moving average of the MACD calculation.
IBM Short PlayPrice action this AM looked good, with IBM bouncing off ~$130.51 pivot along with a move up on the SPY; however, midday - the market turned sharply lower with IBM closing below the ~$130.51 pivot into a large window.
# Next target $116.69
# Short with Dec puts @ $125 and $120
