International Business Machines


For today's chart we have chosen to take a look at IBM because it is quickly approaching the neckline of a well-formed head and shoulders pattern. As you know, this type of pattern is often used by technical traders to predict a change in the direction of the current uptrend, and is generally deemed to be quite reliable. The reason that the head and shoulders pattern is so popular is because it accurately depicts what is happening to the supply and demand of the security. The first trough found after the left shoulder is the first indication that the strength of the uptrend is dwindling and about to reverse.


You May Also Like

Related Analysis
  1. Chart Advisor

    These 4 Stocks are Hitting Technical Headwinds

  2. Stock Analysis

    Will CMS Energy (CMS) Earnings Surprise Estimates in Q4? - Analyst Blog

  3. Stock Analysis

    Will Franklin (BEN) Q1 Earnings Disappoint Expectations? - Analyst Blog

  4. Stock Analysis

    Will Bemis (BMS) Disappoint on Q4 Earnings Estimates? - Analyst Blog

  5. Stock Analysis

    Will PACCAR (PCAR) Disappoint This Earnings Season? - Analyst Blog

Trading Center