Swing Trade Idea – (IBM) – October 26, 2020
Our bullish trade for Monday, October 26th is IBM (International Business Machines Corp). IBM is part of the Technology Sector (XLK). XLK has experienced a 6.4% gain in the last month and its 6M trend turned bullish on September 28th.
IBM has been rangebound for the past few months and has recently pulled back to the $112 support area providing a good risk/reward for a long trade. With a technical score of 2 (out of 10), IBM is a weak stock that will likely continue higher.
As a stop loss, if IBM were to trade below $110 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves above $5.40.
