IBM Breakout Sets Stage for Potential Move Higher

Shares of IBM (NYSE:IBM) are trading lower in premarket sessions on Tuesday, but may be setting up for a breakout.

This could be a bullish signal, indicating a potential move higher. One reason is that the stock has reached resistance at $239, and historically, shares tend to sell off after reaching this level.

However, when buyers eventually overpower sellers, it can create an uptrend. This appears to be happening with IBM, as it's coming out of a classic 'ascending triangle' pattern.

This pattern shows patient sellers willing to hold at the resistance level while aggressive buyers drive up prices over time.