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 three 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 a downtrend column ('O').The current vertical
count price objective is $180. Resistance may be seen at points R1 thru
R3. Support may be seen at points S1, through S4. Support point S2
must hold to preserve the overall bullish trading channel.