Good Time To Buy IBM or Should You Wait?

Good Time to buy IBM or Not?

Good Time to buy IBM or Not?

In a nutshell, the answer would have to be yes?  The stock has been consolidating for a long time, the stock market has crashed or at least that’s what the Naysayers would have you believe and investor sentiment is decidedly negative.

The Two images below illustrate how Market sentiment suddenly changed.  From Dec of 2017, the bullish sentiment was rising and in Jan 2018 it really took off. In fact, at one point, we thought that there was a good chance that the markets could experience a massive selloff, but then after a small sell-off and a lot of yo-yo type action, market sentiment took a turn for the worse and that was good news

Good Time To Buy IBM or Should You Wait

Ideally, the anxiety gauge moves to the Hysteria zone and Bullish sentiment drops below the 20% mark. However, we have to state that things are moving in the right direction and massive crash or is now a low probability event.

Technical Analysis indicates its a good time to buy IBM

IBM has been consolidating since 2013 and it has currently found support in the 140 ranges; as long as it does not close below $140 on a monthly basis the outlook will remain neutral with a bullish bias.   A monthly close above 180 will turn the outlook to bullish and signal that the story is ready to challenge its old highs.

The stock is now trading in the extremely oversold ranges and the sentiment is decidedly negative. Even Buffett sold a 1/3rd of his position in IBM so from a contrarian perspective all the factors are lining up to make it a great long-term buy.  Astute investors can consider deploying money into IBM; start with nibbles instead of taking massive bites.  And never put all your eggs in one basket.

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