International Business Machines (NYSE:IBM) took a hit Wednesday after reporting earnings. At one point, the stock was down by more than 7.5% to $148.53 a share.
Watch This Support
The next important support level for IBM is around the double bottom from February 9, 2018. Back then, the stock traded as low as $144.39. If IBM fails to hold this critical level as support, it could signal more selling in the stock. Traders and investors must be very cautious with IBM until the charts firm up. Currently, IBM is trading below its important 50- and 200-day moving averages, a formation that puts it in a weak technical position. We can only wonder what Watson would say after today's decline.