Traders going long on International Business Machines Corp. (NYSE: IBM) right now are taking a risk, according to Anne-Marie Baiynd.
Baiynd is a financial analyst and the author of “The Trading Book Course.” She recently joined Benzinga’s #PreMarket Prep to talk about the technicals that could bring shares of IBM down to $152.
IBM recently pulled down five points, and Baiynd said that the first thing to look for when that happens is the people who are using the measure to talk the longs.
“So they’re buying it. They’re taking another gamble that this is going to be the new stop for them,” she said.
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Baiynd explained that the problem is that if IBM sits in that “dreadful space” that it’s been in, chances are the pop is not going to be significant. Instead, Baiynd is going to watch the $157.70 mark to see if the sellers come in and attack that region.
“As the buyers come in, if they cannot push this up over $157, and it begins to lose support, we are going to come back down and test that low again,” she said.
In that case, Baiynd said that stock will collapse into the same kind of range event that it was in between $160 and $165.
$IBM set for a big bounce into resistance of 159.6ish - I'm watching for the failure of the bounce to get involved short here
— Anne Marie Baiynd (@AnneMarieTrades) December 15, 2014
“It’s going to see another range event between that $157 to potentially $152 -- $155.50 being that midline space,” she said.
Baiynd also talked about the S&P 500 and other technical levels.
Check out her full interview here:
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