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In last week's What The Charts Say, we suggested that a decline below $180-$181 (U.S.) on International Business Machines Corp. would signal the start of a new down-trend. Indeed, the stock violated the $180-$181 level and reached a low of $172.57 (A). There is minor support at $160-$170 (shaded area), but a decline below this level could give way to a move toward $150 and $125.

A minor rally toward $180-$185 may occur, but all technical indicators, including the falling 40-week moving average (40wMA) and the moving average convergence-divergence (MACD - lower panel), confirm the negative status.

A move below about $165 could give way to a decline toward $150 and $125.

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Monica Rizk is the senior technical analyst for Phases & Cycles Inc. ( Ron Meisels is a contributor to the website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.

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About the Authors
Senior Technical Analyst at Phases & Cycles Inc.

Monica Rizk, Senior Technical Analyst, has a Bachelor's degree in Business Administration and completed the Canadian Securities Institute course. She has been with Phases & Cycles since September 2000 and specializes in the research of Canadian and US stocks using Point & Figure as well as bar chart analysis. More

President of Phases & Cycles Inc.

Ron Meisels, President, Phases & Cycles Inc., has been active as an Analyst since 1971. He was Vice President and Director of Technical Research of Nesbitt Thomson (now BMO Nesbitt Burns) from 1982 to 1990. He was ranked among the top three technical analysts by Canadian Institutions for six consecutive years (Brendan Wood Survey). More


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