Shares of International Business Machines (NYSE:IBM) fell sharply after reporting disappointing earnings results. I predicted the fall on Thursday ahead of earnings. The prediction was based on an overbought condition in the stock price with a major gap being filled ahead of earnings. This meant the stock was into huge resistance and was overbought. In other words, it signaled the odds heavily in the favor of a pull back. That is exactly what happened.
Buy Here
So where is the buy on International Business Machines? The answer is $154. There is a gap fill support to the downside and a down-sloping trend-line that converge at $154.00. This is the buy level, likely hit next week.