Swing Trade Idea (IBM) – May 18, 2023
Our bearish trade for Thursday, May 18th is IBM International Business Machines Corporation (IBM). IBM is part of the Technology Sector, which has performed at 3.17% over the last month with IBM underperforming relative to its sector at -1.82% over the same period.
IBM is currently trading at the top of a bearish channel, which we believe will hold as resistance. As it is underperforming relative to its sector and has a Relative Strength of 4 (outof 10), we believe that IBM will not trade higher over the duration of this trade.
As a close, if IBM were to trade above $128 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $3.24.