New York, March 8th (TradersHuddle.com) - Shares of International Business Machines Corp. (NYSE:IBM) closed the session at $209.42 just above calculated resistance at $208.58. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.
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.
The stock was trading in a well defined range with support at $184.78 and resistance at $208.58. Given that this range was broken, traders will be closely monitoring IBM's price action to gather clues on the future direction.
From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that IBM is still near the broken resistance level, traders will be focusing on the $208.58 level to see if the stock holds the breakout without rolling over.