Heavy Selling in IBM Stock Price, Is it Profit Booking or Downtrend?

• IBM stock price is correcting its values ​​after a recent rally.
• As per the Fib Retracement stage, buyers successfully closed Thursday’s price candle above the 0.618 level.
• Trading volumes were high amid the overnight sell-off, waiting for the weekly price close.

International Business Machines Corporation-IBM, a multinational information, and technology corporation, has registered a faster pace than expected. The stock prices declined last night due to selling pressure triggered by a fall in the global market. The Dow Jones fell 0.46%, the S&P 500 pared a 1% decline, and the Nasdaq was down 1.73% as of the end of Thursday.

International Business Machines Corporation is promoting its latest software based on AI. NYSE: IBM’s stock price has posted the expected rally over the past few weeks. This rally was expected as price action shows a largely range-bound phase for the past 18 months. Because of this wide range, bulls and bears place their buy and sell orders.

Due to remaining in a wide horizontal range, IBM stock price several times retested $115 as support and $140-$145 as resistance. Amid a roller-coaster ride, bulls recorded a sharp bullish rally in October, digital assets were up 16.4%. Later on, the November month starts with selling, and it’s likely to continue ahead. 

Because of resistance, buyers started profit booking and selling pressure came on the share price. Amid price correction, buyers successfully maintain price above the 0.618 Fib level on the last trading session. In the letter of Thursday, sellers were offensively selling the asset, eventually, it closed at $134.47 level along with a 1.72% drop. If the selling continues today onwards, then 0.50 level ($130 ) of fib will be the next support level. 

On 3 November, the market cap was reported at $121.58 Billion. Thus, Trading volume was high amid selling overnight. Amid aggressive accumulating, buyers propelled IBM stock price above the red zone of volatility-200 DMA. As of now, bears are aiming for 200 DMA (red) before short-covering.

In terms of the daily price scale, the RSI indicator is taking steps back. Selling is occurring because of this weak sign. Now its peak reaches the 60 mark.

Conclusion 

Undoubtedly, the NYSE: IBM stock price is under selling pressure as buyers started their profit booking close to vital resistance. If buyers fail to maintain a 0.618 level of fib retracement, bears may pull IBM stock price until 200 DMA or $130 support. 

Technical Levels

Support level – $130 and $115

Resistance level – $140 and $150

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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