There is a wonderful breed of financial analysts called chartists, who care nothing for the fact that a company may have just struck oil, or – like IBM Corp – be up to its gunwales in water and listing perilously: (almost) all they look at is their charts of share price movements to hunt for resistance points, heads and shoulders, double bottoms and other such arcania to forecast where the shares will go next – and the chartists on Wall Street reckon that now could be a good time to buy IBM shares – If you’re long-term oriented and willing to bold for a year or so, I think you’d buy it, Ralph Acampora, director of technical research at Prudential Securities told Reuter; Acampora is well known on Wall Street for a pronouncement in the 1980s that IBM had a very poor chart pattern – when the shares were trading at around $175; now, he says, IBM is trading in a narrow range of $45 to $47 and the chart formation is very neutral and as long as IBM doesn’t break below $45 he thinks that it is a buy; Harry Laubscher, technial analyst at Tucker Anthony, said IBM’s chart shows that it trying to form an important bottom which is likely to take place in the mid-to-lower 40s.
Content from our partners
