International Business Machines

By root | January 24, 2006 AAA

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.



IBM_012506.jpg

You May Also Like

Related Analysis
  1. Options & Futures

    Key Factors Of The Russell 2000 Index

  2. Stock Analysis

    There Are No Good And Bad Stocks, There's Only Good And Bad Timing

  3. Charts & Patterns

    Why These May Be the Top 4 Growth Stocks of 2015

  4. Economics

    Gambling on Macau: Too Risky?

  5. Stock Analysis

    Why the House (and Las Vegas Sands) Always Wins

Trading Center