IBM Analysis for 11.04.2007

INTERNATIONAL BUSINESS MACHINES - IBM

Monthly chart shows a three wave abc pattern into .786 fib, creating a bearish gartley butterfly pattern. October saw profit-taking as price hit the .786 fib resistance.

Weekly chart shows small uptrend line broken and price just below the small LIS of $115.25.

Daily chart shows possible 5 waves up into $121.42 resistance. Move up off the $111 area support appears corrective. Thursday saw sellers gapping down the price at the open and selling hard into the close. However, Friday saw buyers gapping up the stock at the open, only to end up with a neutral day. Since we have a possible gartley in place, look for signs of weakness to either exit longs or to enter shorts.