Wij gebruiken een aantal cookies om u de best mogelijke browser ervaring te bieden. Door deze website te blijven gebruiken, gaat u akkoord met ons gebruik van cookies. U kunt hier meer leren over ons cookie-beleid of door op de link te klikken onderaan iedere pagina van onze website.
Monday’s IBM earnings release will be watched closely for signs of potential weakness following the incessant rise in the dollar. This has led to a rise in the cost of the company’s goods internationally to add on top of a raft of recent woes which have plagued the blue-chip.
Accusations of internal turmoil and underinvestment were just one of the reasons for the deterioration in IBM’s share price. It has seen 24% written off its value since the March 2013 high of $215.89.
Attempts to gain market share within the ‘internet of things’ phenomenon have been greeted with skepticism and with a simultaneous move into cloud technology, the feeling is that these initiatives may even be dilutive for IBM’s margins.
From a technical standpoint, the resistance zone between $166.32 and $164.82 has held up on numerous occasions since the initial move lower in October 2014. With the recent recovery in price, we are likely to see a retest of this level, setting us up for a potentially crucial crossroads. A big beat in earnings may be the spark that this share needs to break above $166.32. Should such a move transpire, bulls would be looking for a potential return towards $172.10 levels as a long-term resistance target.
However, given the long-term trend, I wouldn’t be surprised to see a move back towards the downside upon engaging the resistance zone between $166.32 and $164.82. Should that occur, I would be looking towards a return to $160.00 in the near future.