International Business Machines Corp. (NYSE:IBM) is trading lower today at $197.22, -2.38 (-1.19%). The stock has dropped sharply since it reported earnings. While the price action is negative, IBM has hit its first major support on the daily chart. This level is at $196.80 and can be seen on the chart below. A bounce from this level in the short term is likely.
Crude oil rose further to as high as 103.74 last week but failed to sustain above 103.37 resistance and retreated. Initial bias remains neutral this week for some consolidations first. Nonetheless, near term outlook will remain bullish as long as 98.30 minor support holds. We'd expect rise form 74.95 to resume sooner or later. Above 103.74 will target 114.83 key resistance next.
When Ralph Nelson Elliott discovered the Wave Principle nearly 70 years ago, he explained the social (or crowd) behavior trends and reverses in recognizable patterns.
