In early May, $IBM entered a new “Go” trend with blue bars.
Since then, it was able to rise above resistance from prior highs. However, after setting a new high we saw multiple Go Countertrend Correction Icons (red arrows) indicating that price may struggle to go higher in the short term. Indeed, we saw the stock settle into a congestion range and fall from those highs as GoNoGo Trend painted weaker aqua bars. During that time, GoNoGo Oscillator fell to test the zero line from above. It got stuck there, causing a Max GoNoGo Squeeze. This reflected the virtual tug of war between buyers and sellers at these levels but importantly, the oscillator has now broken out of the Squeeze into positive territory. With momentum therefore resurgent in the direction of the trend (Green Go Trend Continuation Icon) and GoNoGo Trend painting strong blue “Go” bars, we will watch to see if price can climb to a new higher high in the coming days.
