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A Look at IBM’s Technical Indicators

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Jul. 20 2017, Updated 6:36 a.m. ET

IBM’s shareholder returns and stock trends

Technical indicators hold importance for traders and investors as they make market entry and exit decisions. RSI (relative strength index) scores and moving averages are among the most widely used technical indicators.

Let’s look at how IBM (IBM) stock has performed recently. As of July 12, 2017, after several ups and downs, it had fallen ~1% in the trailing-12-month period, and close to 0.6% in the trailing-one-month period. However, its value had fallen more than 1.5% in the trailing-five-day period.

In comparison, peer Teradata (TDC) had generated a negative return of 2.5% in the trailing-five-day period. Cognizant Technology Solutions and Accenture (ACN) had generated returns of ~1.8% and 0.2%, respectively, in the trailing-five-day period.
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IBM’s moving averages and RSI score

On July 12, 2017, IBM’s trading price was $153.90. The stock was trading almost flat compared with its 20-day moving average of $154 and 50-day moving average of $154. It was 6% below its 100-day moving average of $164.

IBM’s 14-day MACD (moving average convergence divergence) of -0.22 shows a downward trading trend, as the figure is negative. MACD, a measure developed by Gerald Appel in the 1970s, is an important technical indicator as it refers to the difference between a stock’s short-term and long-term moving averages.

IBM’s 14-day RSI score is 40. The RSI score measures the speed and volatility of price movement, which ranges from zero to 100. If an RSI score is above 70, it indicates that a stock has been overbought. An RSI score below 30 suggests that a stock has been oversold.

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