So I love buying stocks "low" where I believe big money is coming in to add to their portfolio. Case in point is IBM here as it is trying to bounce off it's 100month SMA. Think abou tit. That price level represents the average price investors paid over the last eight years. That's hefty.
As for the fundamentals, IBM has been pushing hard to gain more of a foothold in the cloud space in the Americas, Europe and Asia; most recently opening a cloud unit in Japan.
So is the 100month low enough? The daily is showing positive MACD convergence but that doesn't mean it won't come into some resistance here at the falling 50d and go back to test support. I am long from $153.68 (will take a partial here to bank a 5% gain) and am willing to add more shares on a test of support or a slight dip below it near $149. Alert to stop out on a "close" below the 100month. If that fails, I'll set an alert for the 200month which caught it in 2009 but there's that enormous gap above. I'd love to fill that.
Comments