IBM

International Business Machines (IBM - Get Report)  was down 5.7% to $134 in Thursday's trading after the company's disappointing earnings.

The decline sends shares below the 200-day moving average, with investors dumping the stock as growth continues to come in below expectations.

IBM reported third-quarter earnings of $2.68 a share, beating estimates by 2 cents. However, revenue of $18.03 billion missed estimates by $190 million and declined 3.9% year over year.

This company just can't seem to grow -- and that's a big problem when it comes to Wall Street. When given the choice between a company like Apple (AAPL - Get Report) or Microsoft (MSFT - Get Report)  or IBM, why would investors want to own the latter?

The poor sentiment is reflected on the charts as well. Should shares break below trend, an even larger decline could ensue. Let's take a closer look.

Apple and Microsoft are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AAPL or MSFT? Learn more now.

Trading IBM Stock

Daily chart of IBM stock.
Daily chart of IBM stock.

IBM stock has been slowly but surely making its way higher in a wide-ranging sideway channel. That channel is emphasized via the blue lines on the chart. In that range, shares have been putting in a series of lower highs (purple arrows), a bearish technical development.

Despite the stock's post-earnings decline, IBM shares are still holding up above channel support. Conversely, the stock is now below the 200-day moving average and 61.8% retracement.

With the decline, the setup now becomes a bit easier.

If bulls shake off Thursday's decline and bid IBM stock back up, look to see if shares can reclaim the 200-day moving average and 61.8% retracement near $135. Back over this area puts the 50-day and 100-day moving average confluence on the board, currently near $139.

Above that and IBM stock can fill its post-earnings gap toward $142.50.

If bulls can't reclaim the 200-day moving average, shares will eventually test channel support (blue line). Below it puts the 50% retracement near $130 on the table, with range support at $125 and the 38.2% retracement at $123.90 serving as the downside targets below that.

Short of some bullish momentum, IBM stock doesn't look all that attractive at the moment.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.