This Dividend Contender May Be Breaking Out Again

Dividend Breaking OutAfter hitting an all-time high back in March, Dividend Contender International Business Machines (IBM) has since been in a long-term downtrend.

But it may finally be reversing course.

First, just a few short trading sessions ago, the stock bullishly broke through its multi-month downtrending resistance line.

Then, just yesterday, the stock may have broke through another key level of resistance.

This time, it appears as if it broke through the resistance line formed off the peak of what could be a double bottom reversal pattern.

Take a look…

Potential Risks: From a technical stand point our only concern with IBM at the moment is the lack of accelerated volume on its last leg up and the possibility of the stock’s RSI getting into overbought territory.

Action to Take: The next few trading sessions will be important for International Business Machines (IBM). We’ll be watching for the stock to confirm its breakout and double bottom reversing pattern. If that happens, based on the measuring principle of the pattern, our target would ultimately be $199.50 (a potential 7% gain from current levels). Of course, the stock would likely run into some resistance on the way. On the other hand, if IBM fails to confirm and falls back below its newly formed level of support then our projection fails and shares may not find serious support until the $172.50 price level again. Either way we’ll alert you with any important developments.