IBM: A Risky Earnings Trade

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IBM Reports after the market closes today. It is probably at or near its fundamental levels even if the report is weak.

The chart shows a strong support level as the stock price is at the neck of the bottom completion level.

IBM is in a long term trading range when viewed on a long term trend. The problem is a weak CEO who has failed at reinvention and a stock that is pricey for its growth potential.

However, it has more upside potential than downside. It would take a really negative report to create a strong run down. That is not likely.

PSHI is very low so less savvy investors own almost half the outstanding shares. This means trading the earnings report is riskier.

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