Short Term Trading Member Forum

[techcharter]

Short IBM

The near term E-waves show the Oct '07 high to Nov '07 low is motive. Since then a flat corrrection took place. Wave c of the flat is an ending diagonal which completed this week. An ending diagonal signals a sharp revesal is ahead; in this case the price should fall.


http://stockcharts.com/h-sc/ui?s=IBM&p=D&yr=0&mn=6&dy=0&id=p64985090776

The flat comes at the beginning or end of the longest wave of the series, so Wave 3 will drop IBM share prices $40 to $55 using fibonacci ratios to Wave 1. The long term chart shows two lows in the $70-$75 range that form support. One in 2005, and the other in 2006.

http://www.marketwatch.com/tools/quotes/intchart.asp?submitted=true&intflavor=advanced&symb=ibm&origurl=%2Ftools%2Fquotes%2Fintchart.asp&time=13&freq=2&startdate=&enddate=&hiddenTrue=&comp=Enter+Symbol%28s%29%3A&compidx=aaaaa%7E0&compind=aaaaa%7E0&uf=8&ma=1&maval=50&lf=1&lf2=4&lf3=0&type=2&size=3&optstyle=1013