Good pattern on IBM before the announcement of results
IBM will announce its Q4 results this 18-jan. What is interesting is the current "cup and handle" pattern on the stock. The figure is 260 days length and 16% height. In addition, there is still a GAP of march 2017 that haven't been fulfilled. From there 2 scenarios are possible:
1) The results are not exceptional and IBM pullback on the green support of the figure and the bullish trend take longer to start (blue scenario)
2) The results are excellent, there is no pullback, the Gap is filled and then the stock jump to the resistance of 180$ (red scenario)
The good news is that both scenarios are bullish and algorithms confirms these predictions at 91%.
1) The results are not exceptional and IBM pullback on the green support of the figure and the bullish trend take longer to start (blue scenario)
2) The results are excellent, there is no pullback, the Gap is filled and then the stock jump to the resistance of 180$ (red scenario)
The good news is that both scenarios are bullish and algorithms confirms these predictions at 91%.