The 100-year-old company is wedging into a tight trade, but it looks like the Bulls are gearing to press a move higher. Just before year-end, the stock set a Three Inside Up Japanese candlestick pattern setting the stage for a rally. It is best to key off of the 154.40 price level for direction. Trading above 154.40 keeps the Bulls heads up for a run at the 156.30 Resistance area. Downward channeling Resistance comes into this spot, and the market may take a pause here.

All trading above 156.30 locks in short-term Bullish momentum and should accelerate the new move higher. 159.02 is the longer term upside target as this stock rides the rally train. Technicals and fundamentals are pointing towards positive movement. IBM is entrenching itself in the blockchain business. This puts IBM in a great position for 2018. And if blockchain fails the company is exploding in cloud services and other hot tech sectors.

The flipside of the trade exists below the 154.40 pivot. Expect a narrowing range here down to 152.49. This zone will be choppy. Do not get caught up here. Only a Break under 152.49 confirms weakness, and the Bears desire to take IBM back down to 150.14. This is it for a slide if the longer term trend is to remain positive. Any move under 150.14 is a negative indication that this stock will remain on edge for a while.

IBM has been beaten down many times, but Big Old Blue still is a cornerstone of the tech sector. 2018 will be an interesting year for this stock with new tax rules and blockchain technology on the rise. With this in mind, this stock will most likely be in a Buy Dips position for 2018. This market may get beaten down, but it always seems to find a way to rebound. Technicals should cause bumps in the road, but fundamentally it is hard to beat IBM. As one of the largest landholders in the world, this company is asset rich beyond its high flying younger competitors.