I am always on the look out for great chart setups that give high reward to relatively low risk. By analyzing the charts, you can find these opportunities and profit consistently. The latest chart catching my attention is International Business Machines Corp. (NYSE:IBM). The stock has surged in the last twelve trading days from $142.50 to $161.40. This monster move comes just ahead of IBM reporting earnings on Monday, July 18th, 2016. Analysts are expecting earnings of $2.93 per share on revenue of $20.04 billion. Such a monster move up into earnings usually factors in them meeting or beating expectations. The daily chart is putting in a candle stick called a topping tail. Keep in mind the real tell will be when the markets close if the topping tail still fits the criteria. Should a topping tail be confirmed at the close today, IBM becomes a major short candidate into earnings for a drop back to $150.00 or lower.

Jenny Rebekka