IBM (IBM) Forms 'Hammer Chart Pattern': Time for Bottom Fishing?

Core Viewpoint - IBM has experienced a downtrend, losing 12.5% over the past two weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest emerges to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottom in a downtrend, characterized by a small candle body and a long lower wick, suggesting that bears may be losing control [4][5]. - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors [5]. Fundamental Analysis - Recent upward revisions in earnings estimates for IBM serve as a bullish indicator, correlating strongly with near-term stock price movements [7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 1.3%, indicating analysts expect better earnings than previously predicted [8]. - IBM holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10].