International Business Machine Corp (US: IBM) corrective downside has come to a halt after prices managed to rebound above the major resistance turned support zone at US$132.64-US$136.09 and it has successfully broken above the larger falling wedge. Recent technical also indicate further upside also:

1. The cup and handle formation indicate a bullish reversal to the upside and with the morning star formation briefly breaking above the flag/handle, it has increased the probability of the success of the pattern.
2. Ichimoku is showing a three bullish golden cross and with the recent morning star breaking above the kumo.
3. Major resistance zone is seen weakening after testing 4 times. Thus, it increased the probability of an upside break.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line