Shares of IBM ( IBM) are rallying Thursday on the heels of an earnings beat this morning. In our last review of IBM on September 16 we wrote that "IBM could continue to trade in a broad sideways pattern but further weakness cannot be ruled out as weak market conditions can mean that traders sell first and ask questions later."
Let's check the charts again. 
In the daily bar chart of IBM, below, we can see that the shares are poised to test the declining 50-day moving average line. A close above the 50-day line is an improvement but the slope of the 50-day line is still negative and that is more important.
The On-Balance-Volume (OBV) line has been steady the past 2 1/2 months and that is mildly positive. The Moving Average Convergence Divergence (MACD) oscillator is bottoming.
In the weekly Japanese candlestick chart of IBM, below, we can see that the shares have held the $115 area. This area or zone held back in late 2021. Prices are going to bounce a bit but the indicators on this frame are not robust. The slope of the 40-week moving average line is negative.
The longer-term pattern of the OBV line is bearish and the MACD oscillator is in sell territory below the zero line.
In this daily Point and Figure chart of IBM, below, we can see a downside price target in the $107 area. Resistance starts at around $134.
In this weekly Point and Figure chart of IBM, below, we can see the same $107 downside price target.
Bottom-line strategy: I have no doubt other technical analysts will start to warm up to the long side of IBM but I remain bearish until a base pattern appears.
