Swing Trade Idea (IBM) – April 6, 2021
Our bullish trade for Tuesday, April 6th is IBM (International Business Machines Corp). IBM is part of the Technology Sector (XLK). XLK has experienced a 9.3% gain in the last month as technology stocks continue to recover.
IBM has recently broken above the $132 resistance level and retested providing a good risk/reward for a long trade. With a technical score of 5 (out of 10), IBM is a neutral stock that will likely continue higher.
As a stop loss, if IBM were to trade below $132 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $4.04.
