I was reviewing CSCO, a past NFTRH+ highlight, to consider adding to my existing position (based on the long-term breakout that is still in effect). While doing so I came upon a Motley Fool article comparing the relative value of CSCO with fellow old tech warhorse IBM.
NFTRH+ is a 100% TA related service however, so when I pulled up the weekly IBM chart I noticed a bullish looking pattern that is trying to break a 4 year old trend line. At this moment the price is above the trend line but still bumping up to neckline resistance (red line).
This is a simple look-ahead to state that if IBM should break 165 on a weekly close the objective would be 205 or thereabouts. If interested, you might want to research fundamentals to see if they could color in some reasoning for such a move. A failure to break above the neckline obviously keeps this look ahead at bay.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.
