Technical Analysis – IBM stock looks positive ahead of Q4 earnings results
January 21, 2019 4:26 pm
IBM’s stock price unlocked fresh one-month highs on Friday ahead of the company’s quarterly earnings results on Tuesday. Technically, the market is expected to continue the rebound off the decade lows as the RSI fluctuates positively above its 50 neutral mark and the MACD keeps strengthening to the upside and above its red signal line.
An extension higher could find a barrier between Friday’s high of 124.66 and the 126.51 peak on December 3, which if violated could result to further improvement, with the price probably reaching resistance next at 131. If the latter allows the bulls to pass, then the price may jump higher to test the 139-142 restrictive area.
On the downside, support to negative movements may appear within the 122-119.65 noisy zone, while lower, the price may stop around 116.80, where the 20-day moving average (MA) is currently placed. A drop below the November’s trough of 114.40 may trigger steeper declines towards the 105.84 decade low.
In the medium-term picture, the market has not fully recovered the downfall off 153.78 and therefore remains bearish. The 50-day MA however, has started to flatten which may be an indication that the broader picture may be turning more neutral.
It’s worth noting that IBM is anticipated to report weaker revenues in Q4, while the average analyst recommendation is hold.
IBM’s stock price unlocked fresh one-month highs on Friday ahead of the company’s quarterly earnings results on Tuesday. Technically, the market is expected to continue the rebound off the decade lows as the RSI fluctuates positively above its 50 neutral mark and the MACD keeps strengthening to the upside and above its red signal line.
An extension higher could find a barrier between Friday’s high of 124.66 and the 126.51 peak on December 3, which if violated could result to further improvement, with the price probably reaching resistance next at 131. If the latter allows the bulls to pass, then the price may jump higher to test the 139-142 restrictive area.
On the downside, support to negative movements may appear within the 122-119.65 noisy zone, while lower, the price may stop around 116.80, where the 20-day moving average (MA) is currently placed. A drop below the November’s trough of 114.40 may trigger steeper declines towards the 105.84 decade low.
In the medium-term picture, the market has not fully recovered the downfall off 153.78 and therefore remains bearish. The 50-day MA however, has started to flatten which may be an indication that the broader picture may be turning more neutral.
It’s worth noting that IBM is anticipated to report weaker revenues in Q4, while the average analyst recommendation is hold.
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