Richard Wyckoff Theory

Stock to Watch: IBM

NYSE: IBM

9th of October 2013 Copyright © Akin Yalcin, MSc.

0.Contents

- 1. Richard Wyckoff Market Phases - 2. Analysis on IBM- 3. Conclusion

1. Wyckoffian LogicWyckoffian Phases of the Market

• The stock market has four major phases: Accumulation, Markup, Distribution and Markdown.

• When you understand the Wyckoffian phases of the market, you can determine when to be in or out of the market.

• You begin to understand how the large accounts determine the market trend, change of trend and price action.

(Source: readtheticker.com)

1. Wyckoffian Logic (2)Wyckoffian Phases of the Market

2. IBM

My thesis: IBM has entered a period of downtrend.

What market phase are we now in?

2. IBM (2)

Next page,

Detailed elaboration on start downtrend

Elaboration on previous upstart trend

2. IBM (3)Elaboration start downtrend

3.Conclusion

• While IBM was trading around $205-210, several indicators pointed out the current decline to

+/- $180 (support level)

• I suggest IBM will further decline to major support zone of $160-170