During Thursday night's Lightning Round segment of Mad Money one caller asked host Jim Cramer about IBM (IBM) . "I like IBM. They're doing a good job. There will be growth after they split the company," Cramer replied.
Let's check out the charts and indicators of Big Blue.
When we reviewed IBM on April 26 we recommended that traders should "Stay long IBM. Raise sell stops to $135 from $131. $169 and then $201 are our new price objectives for now." So far so good.
In the daily bar chart of IBM, below, we can see that the stock has continued higher. Prices are above the rising 50-day moving average line and the rising 200-day line.
The daily On-Balance-Volume (OBV) line has shown improvement the past three months as traders have been more aggressive buyers. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in early March for a buy signal. A new buy signal can be seen now.