Medical Supplies Falling, But This Relative Leader Trying to Buck the Trend

On Wednesday, July 6th, I wrote an EB Digest article on Unitedhealth Group (UNH) and how the company had reported 58 consecutive quarterly earnings beats that dated back nearly 15 years.

Then, last Friday UNH reported its 59th consecutive quarterly earnings beat, $5.57 actual vs. $5.24 estimate. In addition, UNH's revenues easily topped expectations as well and UNH raised its earnings guidance for its current fiscal year.

I suggested that UNH could see a pre-earnings advance and/or a nice market reaction from yet another earnings beat. That's exactly what happened. One of the most interesting quarterly earnings reports will be released on Monday. It's International Business Machines (IBM), which needs a big report to potentially breakout above long-term price resistance in the 135-145 area:

Enter International Business Machines (IBM):

I count a dozen attempts (red arrows) to clear 135-145 resistance with zero successes over the past decade or so. Currently, IBM has a SCTR score of nearly 90, which suggests strong relative strength. The blue circles also highlight that improving relative strength in 2022 as well.

Will it be enough to FINALLY send IBM over the top? We'll know on Monday afternoon. In addition to discussing IBM, I'll be looking at dozens of upcoming earnings reports, with a particular eye on relative strength, in our Q2 Earnings Sneak Preview webinar at 4:30pm ET, providing similar key support and resistance levels. Keep reading to learn how to join me for this important event!

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.