International Business Machines (IBM) is a to report its quarterly earnings figures on Monday. Let's check out the charts to see how traders may be handicapping the price action.
On the fundamental side, BMO Capital Markets analyst Keith Bachman, who cited doubts about the economy's strength, cut his price target to $135 from $155 and affirmed his "market-perform" rating.
In the daily bar chart of IBM, below, we can see the big hit prices took from early February until the latter part of March. No one in Armonk, N.Y. was smiling. Prices have recovered a bit in recent weeks but have stopped short of the declining 50-day moving average line.
Trading volume was heavy in March but it has retreated back to more normal levels this month. The On-Balance-Volume (OBV) line shows a little "life" but is not a strong vote of confidence or aggressive buying.
The Moving Average Convergence Divergence (MACD) oscillator is moving in the right direction but we need to ask for how long?