Breakout confirmed over 154.26 in good volume, as expensive technology stocks continue to correct downward and the market continues to chase better value. IBM can now be purchased with a stop-loss at 150 and targets of 158/162/168/180. Blended reward-to-risk of 1.5x to 2.5x depending on where the momentum on the stock takes us. In the best case scenario of IBM reaching the top of the long term channel towards 175, the risk-reward becomes a compelling 4/1. Note that this breakout takes place just above the MA100 support on the weekly chart. Options strategy highlighted in related idea below still valid.
