As I pen this (May 22), the stock is sitting right on the 13-day EMA, (the green line on the price graph), having come back down to this level in a linear fashion. Interestingly, this occurred after a huge day that brought the stock to a 52-week price high.

It's amazing how often this occurs. A stock has a huge day on big volume, cracks a 52-week price high and appears to be off to the races. Instead, a retracement the next day brings it back to the 13-day EMA, and traders are standing around in the pit scratching their heads in disbelief.

Given the strength that IBM has exhibited in the recent past, I'd look to buy the stock.

However, if IBM cracks and closes beneath the 13-day EMA, this would be a sign of technical weakness, and I would exit immediately. Were I to trade tomorrow, my game plan would be "if it's up, buy it."