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Much to the chagrin of steadfast bears, Big Blue, a.k.a. $IBM, is knocking up against multi-year highs. You may recall that back in early August, I wrote a piece discussing the implications of $IBM breaking out above the $130 range, which has been resistance dating back to 1999. If Big Blue can, indeed, complete the major breakout in the coming weeks, then I believe that the broad market will be catapulting higher as well. Remember, we are talking about a resilient technology firm with a market capitalization of $169 billion, which was a thriving company long before anyone knew what what a website was.
Looking at the stock in multiple timeframes, in the short term $IBM is extended. However, the weekly and monthly charts should illustrate how technically sound Big Blue is from a broader perspective. This time around above $130, the odds favor a successful resolution. Even if you style is more amenable to trading higher beta, small cap stocks, Big Blue should still be on your list of broad market scans, right next to $FCX.
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solid as a rock,silently i might add. dig reading your posts chess,thanks man
Thanks for being a loyal reader.
I like this one, too. Will buy on the confirmation breakout.
Good plan.