IBM Corp.: wave analysis 30 January 2019, 08:34

IBM Corp.: wave analysis

30 January 2019, 08:34

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	134.31
Take Profit	105.90
Stop Loss	144.88
Key Levels	105.90, 144.88, 154.20, 161.90

Alternative scenario
Recommendation	BUY STOP
Entry Point	144.95
Take Profit	154.20, 161.90
Stop Loss	141.85
Key Levels	105.90, 144.88, 154.20, 161.90

The price may fall.
On the 4-hour chart, the third wave of the higher level (3) developed. Now the formation of an upward correction as the fourth wave (4) is ending, within which the wave c of (4) is developing. If the assumption is correct, after the end of the correction the price will fall to the level of 105.90. In this scenario, critical stop loss level is 144.88.


Main scenario
Short positions will become relevant after the end of the correction, below the level of 144.88 with the target at 105.90. Implementation period: 7 days and more.
Alternative scenario
The breakout and the consolidation of the price above the level of 144.88 will let the price grow to the levels of 154.20–161.90.