International Business Machines, aka IBM (IBM) , was reviewed just before the company released its earnings numbers, and we outlined a strategy of going long: "IBM's charts and indicators are shaping up for a strong fourth-quarter rally. Traders and investors could go long on strength above $145 and $150. Risk a close below $135."
Prices did not rally after the numbers and instead gapped lower so traders should not have gotten long. IBM declined to near the Point and Figure "price target of around $132." The gap to the downside has so far not started a new leg to the downside, so let's look at a quick-turning candlestick chart.