Not only do I think that CEO Ginni Rometty now has the ball rolling in the right direction at IBM (IBM) , I think the name has some upside potential from a technical perspective as well. By the way, I am long these shares, so you might say that I am talking my book. We all know about IBM finally embracing blockchain technology and taking a more modernized approach to the various service lines that modern tech firms must be involved in, but the chart is telling me something.

There's no slam dunk here. Money Flow remains troublesome. Relative Strength is non-committal. The daily Moving Average Convergence Divergence (MACD) appears to be in a decent spot after a precipitous fall. All that said, I want you to take a look at the forward-looking pricing models.

The flash correction of January/February put this name into what looks like an artificial hole, particularly that bottom 2.50 or so. What that downward move did was drop the action from the upper channel of the Pitchfork into the lower. The action since leaves us precisely at a 61.8% re-tracement of the selloff, which, though by a different route, is also precisely where the S&P 500 stands Wednesday morning. Hmm. Perhaps if we get help there... we get help here.

Look, there is obvious resistance on the chart that could crop up right here, but potentially as high as $162.50. If you want out, this is your chance. If the name is able to tackle and hold this level, I think you are likely to see prices in high $160s, perhaps as high as $170 within two months.

Special Note

Tune in a 1 p.m. ET on Wednesday, Feb. 28, for a free one-hour webinar on how to invest in bitcoin and other cryptocurrencies. TheStreet's Scott Gamm will host noted cryptocurrency commentator James Altucher, Reality Shares CEO Eric Ervin, attorney and cryptocurrency expert Kathleen Moriarty and Bruderman Brothers Chief Market Strategist Oliver Pursche. Click here for details and to register.

At the time of publication Guilfoyle was long IBM equity.

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