Do the charts and indicators reflect Jim's positive outlook? Let's check.
In this daily bar chart of IBM, below, we can see a developing bottom pattern since early November. Prices have traded sideways and a decline to a new low in late December was brief. Volume was not heavy and prices quickly retraced the losses. Downside probes like this one on IBM are part of bottoms.
Note that the On-Balance-Volume (OBV) line makes a higher low in December versus last October. The OBV line is close to making a new high for the move up and signals a shift from the aggressive selling seen in October.
The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed to the upside in early November for a cover shorts buy signal. The oscillator has continued to rise and is now close to crossing the zero line for an outright go long signal.
In this weekly bar chart of IBM, below, we can see some technical improvement. Yes prices are still in a downtrend and still below the declining 40-week moving average line.
However, the weekly OBV line is turning up and the weekly MACD oscillator is crossing to the upside for a cover shorts signal on this longer time frame.
In this Point and Figure chart of IBM, below, we can see an upside price target of $150.74 being projected. A rally to $127.44 will be a bullish breakout on this chart.
Bottom line strategy: Cramer was positive on IBM in the Lightning Round and the charts reflect that too. Traders could go long IBM at current levels and on strength above $127. Look for a rally to the $150 area again and risk below $115 for now.