The chart is a 3 box reversal Point and Figure chart.
The chart is based on daily high and daily low prices.
The chart is a 2% logrithmic chart, ie each chart box represents
a price change of 2% of the value of the box above or below it.
Three possible support prices and four possible resistance prices
are shown, as well as the support/resistance lines.
A 'resistance' or 'support' point is a price where an issue's upward
or downward price movement may 'stall'. The ultimate result of the 'stall'
may be either a continuation or a reversal of price movement, depending
on whether there are more or less sellers than buyers at the specific price
IBM is trading within an overall bullish trading channel. Currently,
IBM appears to be in a 'broadening' formation after having traded 'sideways'
for almost 8 months. IBM is currently in an uptrend column ('X'), at resistance
point R1. Resistance may be seen at points R2 thru R4. Support may be seen
at points S1, through S3. Support point S1 must hold to preserve
the overall bullish trading channel.