IBM reported higher-than-expected Q1 earnings but shares dropped 2.5 percent in after-hours trading. During regular hours IBM stock gained 2.3% closing at $207.45. In the first 20 minutes of the after-hours trading session IBM shares fell sharply to the day’s open, and it will be interesting to monitor the technology stock on Wednesday. In the meantime, stock traders looking at the daily chart may find quite a few reasons to short IBM stock, like the doji candlestick on all-time high, followed by the gap down. The 20-day moving average has also been penetrated the past few days. Yet, IBM stock has proven to be a great investment since 2009 when the uptrend began and IBM stock price was below $100!
After-hours trading session often presents big moves fueled by low volume though. Some traders disregard any after-hours trading action, while others do take it into account when deciding on the next day’s trading decisions. As stock news happens to become available outside regular trading hours occasionally, stock prices react to the news setting the general behavior before next day’s open. In IBM’s case after-hours trading chart is the opposite of the intraday stock chart, with buyers giving up their power to sellers.
It would be worthwhile to watch Wednesday’s IBM stock trading action and find out for yourself if after-hours trading graphs can help your trading.