The last six times that IBM broke below its 200-day simple moving average it almost immediately reversed course and pushed back to the upside. This has been a consistent event since the crash in late 2008, and we’re not betting against it continuing this time. Even with significant volume and a big earnings crash, there’s enough here to warrant a cautiously bullish trade. We’re going to let things settle out over the weekend and see what Monday brings us, at which point it may be time to put on a trade!
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