Last week, the market panicked over proposed increases to the capital gains tax rate. But that only made dividend stocks that much more valuable, Jim Cramer told his Mad Money viewers Tuesday night.
Cramer reviewed his top 10 high-yielding dividend stocks which included IBM (IBM) , which is breaking itself up to spur growth. Let's pay a visit to the charts of Big Blue.
We looked at IBM on April 20 and wrote that "Aggressive traders could go long IBM at current levels risking to $131. The $156-$161 area is our price target for now." Let's see how things are progressing.
In this updated daily bar chart of IBM, below, we can see that prices gapped higher earlier this month and have continued to trade firmly. A steady to stronger move up after an upside price gap tells me there is more buying than profit taking. The slope of the 50-day moving average line is positive and so is the slower-to-react 200-day moving average.
The On-Balance-Volume (OBV) line continues to creep higher from early March as buyers are slowly showing they are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly Japanese candlestick chart of IBM, below, we see a constructive picture. Prices are in an uptrend above the rising 40-week moving average line. The candles look bullish at this point in time.
The weekly OBV line is rising and the MACD oscillator is bullish too.
In this daily Point and Figure chart of IBM, below, we can see an upside price target in the $169 area.
In this weekly Point and Figure chart of IBM, below, we can see a $201 price target.
Bottom line strategy: Stay long IBM. Raise sell stops to $135 from $131. $169 and then $201 are our new price objectives for now.