Current trend

Shares of IBM Corp., a global giant in the development and sale of hardware software, are moving within a corrective trend at 144.00.

The company continues to restructure its leadership team and announced yesterday that Michael Miebach, CEO of MasterCard Inc., will join the board of directors of IBM Corp. on October 30 and will help the corporation in the development of cybersecurity and digital transformation.

According to the Q2 financial report, adjusted earnings per share of 2.18 dollars beat estimates of 2.02 dollars but revenue of 15.48B dollars was less than the forecast of 15.58B dollars. Software earnings rose by 7.0%, and revenue from consulting services – by 4.0%. At the end of the year, analysts expect revenue growth in constant currency by 3.0–5.0%.

The Board of Directors of the company approved the size of regular dividends at 1.66 dollars per share, which is equivalent to 6.64 dollars per year. The payment will take place on September 9, and the closing of the register of shareholders is scheduled for August 9.

Support and resistance

On the daily chart, the trading instrument is moving within the global Head and shoulders reversal pattern with the Neckline around 145.00.

Technical indicators keep a buy signal: the range of fluctuations of the Alligator EMA expands upwards, and the AO histogram forms rising bars above the transition level.

Resistance levels: 146.00, 153.60.

Support levels: 140.00, 132.00.

Trading tips

Long positions may be opened after the price rises and consolidates above 146.00 with the target at 153.00. Stop loss – 144.00. Implementation period: 7 days or more.

Short positions may be opened after the price reverses, falls, and consolidates below the support level of 140.00 with the target at 132.00 and stop loss 144.00.