Watson Unmasked – He is a Crab!
- Posted by Greg Harmon
- on March 14th, 2013
IBM, $IBM jumped higher when it reported earnings in January but then went and buried in the sand. But the need to hide and then bounce off of 197.50 near all of the Simple Moving Averages (SMA) is becoming very clear. Watson, the intelligent machine that won Jeopardy, is in reality a Crab. A Deep Crab. The Deep Crab Harmonic pattern is playing out in its chart below on the daily
timeframe. The target for a price reversal comes at 226.03, and this is just above the Measured Move equivalent to the move from the 197.50 low to the 211 consolidation before leaping higher Wednesday, at 224.50. Still time to go crabbing. But it gets better on the weekly picture. Pulling back to this perspective, shows the 10 month consolidation in 2010 nearly mirrored with an eleven month consolidation that is being broken now. The Measured Move on that break takes it to 280 and symmetry on teh move would suggest giving it 18 months to get there. This Crab wants to run.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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