It's that time of year again when financial writers give you a summary of what happened in the past 12 months and endeavor to predict what single stock could be a home run this coming year. It is an interesting exercise, although I think it is like putting all your money on one number in roulette.
Despite that quibble I will add my two cents to the mix this year. I think the stock performance of IBM (IBM) can surprise on the upside in 2020.
In the weekly bar chart of IBM, below, we can see the past three years of activity. Prices are below the flat 40-week moving average line.
The weekly OBV line has been steady the past year and the MACD oscillator is only slightly below the zero line so a price advance could move this indicator back to a buy.
Bottom-line strategy: I think the price gains in 2020 will be front loaded in the first two quarters of the year. If I had to call a top I would anticipate that the middle of April might be the best time to take profits. Looking at IBM I would recommend going long around $135 and risking a weekly close below $130. The $200 area is our price objective for the first half of 2020.