It’s been a week dominated by uncertainty and noise—geopolitical tensions, mixed economic data, and cautious market sentiment.
From tariffs to shaky earnings reports, traders are navigating a market that feels on the edge, waiting for clarity.
Despite the turbulence, one thing has become clear: the importance of focusing on stocks with strong fundamentals and momentum that can weather the storm.
This is where IBM (IBM) comes into play.
While the market continues to digest broader macroeconomic concerns, IBM has quietly been on a tear, trading just shy of its 52-week high and up 15% year-to-date.
With stellar earnings, a robust technical setup, and clear leadership in AI and software, IBM is proving it has what it takes to thrive in this environment.
Let’s break down why IBM is one of the most compelling opportunities right now.
Bullish Technical Factors Supporting IBM
IBM’s technical setup is firing on all cylinders, making it one of the most promising stocks to watch right now. Three key factors—relative strength, stacked EMAs, and a fresh daily squeeze—are signaling a strong and sustainable uptrend.
Let’s break them down:
Relative Strength
IBM has been a standout performer, up 15% year-to-date and significantly outperforming major indices like the S&P 500 and Nasdaq.
This relative strength is a clear indicator of institutional demand, as investors gravitate toward stocks that can rise even in a choppy or uncertain market.
When a stock consistently outperforms its peers, it’s a strong signal that it’s poised for further gains as momentum builds.
Stacked EMAs
IBM’s shorter-term EMAs (e.g., 8-day and 21-day) are trading above its longer-term EMAs (e.g., 50-day), creating a “stacked” alignment. This pattern indicates that buyers are firmly in control and underscores the strength of the uptrend.
Stacked EMAs not only confirm bullish momentum but also suggest that pullbacks to key levels—such as the 8-day or 21-day EMA—can offer excellent buying opportunities.
Fresh Daily Squeeze
IBM is also showing a fresh daily squeeze, a technical signal that occurs when price volatility compresses, creating a coiled spring effect.
Think of it as the stock gathering energy for its next big move. These setups often precede explosive breakouts, and with IBM’s strong fundamentals in place, this squeeze could act as the catalyst for its next leg higher.
Together, these factors—relative strength, stacked EMAs, and a fresh daily squeeze—paint a clear picture of a stock with undeniable bullish momentum.
IBM’s technical and fundamental alignment makes it a prime candidate for continued outperformance.
A Quick Look at IBM’s Tailwinds
IBM’s recent earnings success adds even more weight to its strong technical setup.
As an earnings winner, the stock delivered a standout Q4 2024, with raised guidance for 2025 driving momentum.
Highlights include $13.5 billion in free cash flow guidance and continued growth in generative AI, positioning IBM as a leader in enterprise AI solutions.
The company’s standout performance has caught Wall Street’s attention, with analysts raising price targets to as high as $276. This earnings momentum aligns perfectly with the bullish technical signals, making IBM a compelling setup for traders.
Earnings winners like IBM often fuel sustained uptrends, and that’s exactly what we’re seeing here.
Your Action Plan
IBM offers a rare combination of strong fundamentals, technical momentum, and leadership in a high-growth sector. Here’s why I’m bullish on the stock:
- Earnings Strength: IBM consistently beats expectations, and its raised 2025 guidance signals confidence in its growth trajectory.
- Technical Momentum: Stacked EMAs and a fresh daily squeeze indicate a strong uptrend with significant upside potential.
- Relative Strength: Up 15% YTD, IBM is greatly outperforming the broader market, proving its resilience in a volatile environment.
If you’re looking for a high-conviction setup, IBM is one to watch. The stock’s technical and fundamental strength make it a standout in an otherwise uncertain market.
I’ll be looking for squeezes on shorter time frames for potential entries.
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