IBM Approaching Channel Resistance – Bear Call Spread Setup?
IBM has rallied strongly within a clear ascending channel since late 2023, pushing recently into all-time highs and testing the upper boundary of the structure. This level has acted as resistance multiple times in the past — and we may now be approaching another potential rejection zone.
🔍 Key Technical Context:
✅ Price trading near ATHs, pressing against the top of the rising channel.
🟦 Structure remains bullish, but extended and overbought.
🔄 Prior touches of channel highs led to pullbacks (see red markers).
🧲 A demand zone remains intact around $266–270, but price is currently stretched above it.
🧠 Options Strategy Outlook:
With volatility elevated and price near structural resistance, this could be a solid setup for a Bear Call Spread:
Sell Call near: $285–290
Buy Call near: $295+ (to define risk)
Thesis: Price will remain below upper channel or stall around ATHs.
📌 Summary:
IBM is in a strong uptrend — but technical conditions suggest exhaustion risk near channel resistance. No short signals yet, but for non-directional traders, this could be a low-risk zone to build income-based spreads.
I'll be monitoring for:
🕯️ Reversal patterns at resistance
📉 Breakdown below $278 = early weakness
❌ Break and close above channel = invalidates idea
🔍 Key Technical Context:
✅ Price trading near ATHs, pressing against the top of the rising channel.
🟦 Structure remains bullish, but extended and overbought.
🔄 Prior touches of channel highs led to pullbacks (see red markers).
🧲 A demand zone remains intact around $266–270, but price is currently stretched above it.
🧠 Options Strategy Outlook:
With volatility elevated and price near structural resistance, this could be a solid setup for a Bear Call Spread:
Sell Call near: $285–290
Buy Call near: $295+ (to define risk)
Thesis: Price will remain below upper channel or stall around ATHs.
📌 Summary:
IBM is in a strong uptrend — but technical conditions suggest exhaustion risk near channel resistance. No short signals yet, but for non-directional traders, this could be a low-risk zone to build income-based spreads.
I'll be monitoring for:
🕯️ Reversal patterns at resistance
📉 Breakdown below $278 = early weakness
❌ Break and close above channel = invalidates idea
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.