New York, Feb 10^th (TradersHuddle.com) - Shares of International Business Machines Corp. (NYSE:IBM) closed the trading session at $123.21 placing the price action in a very tight range, given that calculated support is set at $121.9 and the calculated resistance based on an algorithm of peaks and troughs is set at $128.655

International Business Machines Corporation (NYSE:IBM) provides computer solutions through the use of advanced information technology. The Company's solutions include technologies, systems, products, services, software, and financing. IBM offers its products globally through different distribution channels. Its Global Technology Services segment offers IT infrastructure and business process services. The company's Global Business Services segment provides professional services and application outsourcing services, including consulting and systems integration, and application management. IBM was founded in 1910 and is based in Armonk, NY.

IBM's stock price action indicates that both sellers and buyers are materializing very close to each other, which is indicative to a momentum building area, as the stock can resolve by breaking out of the tight range that developed.

Traders wanting to establish a position should place close attention to IBM's price action, as any movement outside its predefined range of $121.9 and $128.655 could grab the attention of momentum buyers, looking for a big movement in the price of the stock. Traders need to be aware that tight range resolution works both ways, hence, a move below support at $121.9 could spark above average selling. A tiered approach can be a good way to approach starting a position in IBM's, by establishing a starter position while the stock is in the tight range, and then adding to the position as it breaks and closes above resistance.