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.
Four possible support prices and five 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 has broken out to the upside after having traded 'sideways' for almost
8 months. IBM is currently in an uptrend column ('X'), having given a 'buy'
signal. The current vertical count price objective is $180. Resistance
may be seen at points R1 thru R5. Support may be seen at points S1, through
S4. Support point S3 must hold to preserve the overall bullish trading