Sell Signal Offers Chance to Short IBM

by Sam Collins   08/07/09
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IBM (IBM) -- This stock is in a bull market, but recent gains have run it into massive overhead.

Following the recent gap from $110 to $113, and yesterday's sell signal from the stochastic, IBM looks like it's ripe for a quick pullback.

More Trader Alerts

Short IBM at $117 or higher with a price objective of $105.

This is a speculative short-term strategy for traders only, and they are cautioned to use stop-loss orders to protect against a loss in the event of a breakout through the top of the current trading channel.

Also, short sale rules require that the stock be borrowed from your broker and deposited into a margin account before an order is executed.

Learn more about the issues involved with shorting stocks.

Go after money doublers with every trade you make! Download your FREE copy of The Options Trader's Guide to Technical Analysis today.

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