Shares of IBM (NYSE:IBM) have run into a resistance level. If history is a guide, there’s a good chance that the price is going to move lower.
Resistance is a large group of investors trying to sell their shares at or close to the same price. In this case, it’s $138.
At resistance levels, there is more supply than demand. This is why rallies end or pause when they reach them.
And as you can see on the following chart, sometimes when a rally ends a resistance and downtrend soon follows. That’s what happened with IBM the last four times it reached this important level. It may be about to happen again.
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