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IBM Percolating in a Bullish Reversal Scenario

International Business Machine $IBM has been in a multi-year correction since it stalled around $210 in 2012 through 2013. Price has fallen to $106 by the end of 2018. But since then, price has been roaring back up in 2019, showing a possible return to the bullish trend. 

While it is still a bit early to say in terms of price action, a couple more clues will make me more confident of the bullish outlook. Let's take a look at the clues so far.

IBM Weekly Chart

(click to enlarge)

Bullish Push:
- So far in 2019, we saw a key higher low in June when price bounced off $127.  
- Note on the daily chart below: When price bounced off $127, it respected a previous resistance around as support - a bullish signal.
- Price then made a higher high and broke above a falling resistance, and a support/resistance pivot area. 
- Furthermore, price is breaking above the 200-week simple moving average (SMA).
- Still, we can see that the $160-$163 area will be a key resistance that can still keep IBM in a bearish trend.
- On the daily chart, we can see that price had a sharp breakout last week on the back of its Q2 earnings beat.
Key Levels:
-  Now, if the $145 area becomes support, we should have more confidence of the bullish outlook.
- On the other hand, if price fails to push above $155, it would show a weak bullish attempt. 
- Therefore, a break above $155 combined with support at $145 would signal to me that price will have strong enough bullish momentum to break above $160 with the $180-$185 (2017-high) area in sight. 

IBM Daily Chart

(click to enlarge)

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