TradingKey – As IBM earnings approach, rising risk aversion puts pressure on the stock price, sending it down toward $240 with the risk of further sliding to the $200 level.

On October 21 Eastern Time, century-old tech giant IBM (IBM) fell slightly in pre-market trading, dipping back near $240 again. Does this mean the bottom-fishing rebound rally has ended?

Since peaking in June this year, IBM’s stock price has steadily declined from its all-time high of $330 to a low near $200 at the end of July, resulting in a maximum drawdown of nearly 40%. Since then, IBM’s stock has staged a rebound, but has consistently failed to break above $250.

The recent lack of momentum in IBM’s stock price rebound is primarily due to the macroeconomic…