After the close of Wall Street, IBM will publish its results for the first quarter of 2023. Analysts are not expecting much. They even predict a decline in profits. However, this in itself comes as no surprise, as Big Blue has jumped on the cloud bandwagon far behind the competition. Evidenced by a stock market far from its historic high of late 2012-early 2013.
If the American company has definitively lost its leadership in the technology sector, it is because it has long paid for its exposure in hardware, which itself had been its strength in the distant past. In addition to not being one of the leaders in the cloud, its revenue and profit growth have steadily faltered. In the last 5 years alone, they were down 5% and 22% respectively.
IBM’s price has clearly been on a downward trend since late 2012-early 2013. But it managed to stabilize in a range between the support of $116 and the resistance of $152, despite the Covid crisis. And for the fourth consecutive time, it has just failed again below the top of the range to the point of invalidating the crossing of the long-term descending line.
In the event that IBM disappoints on the publication of the results for the first quarter of 2023 after trading, the bears could test $116. With the fear that prices will come out of the range from below towards the $91-103 area. Conversely, if Big Blue meets market expectations, a jump would still be possible. Nevertheless, for the bulls to regain hope, it would be necessary to cross $152 on the condition of having catalysts likely to calm the selling pressure.
© AbcBourse.com. All rights reserved
Did you like this article ? Share it with your friends with the buttons below.
