Shares of IBM Corp., a giant in the development and sale of hardware software, are moving in a corrective trend at 173.00.

On the daily chart, the price is moving away from the support line of the ascending corridor with dynamic boundaries of 200.00–187.00.

On the four-hour chart, after reaching a yearly low of 162.00, the quotes reversed and began to work out the recent price gap of 167.00–183.00. The current trend indicates a high probability of its implementation, after which the asset will return to the early spring highs of 183.00, from where the correction may resume.

Technical indicators are slowing down the sell signal: fast EMA on the Alligator indicator are actively approaching the signal line, narrowing the range of fluctuations, and the AO histogram forms ascending bars, rising below the transition level.

Trading tips

Long positions may be opened after the price rises and consolidates above 175.00, with the target at 183.00. Stop loss – 170.00. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 171.30, with the target at 162.30 and stop loss 175.00.