Sell Signal Offers Chance to Short IBM
by Sam Collins 08/07/09
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.
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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.
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