International Business Machines (IBM) stock price has been showing a bearish outlook in the short term when the stock price slipped below its 50-day EMA. Thereafter, the stock price consolidated near the recent swing low and made a breakdown of the consolidation range.
However, the IBM stock price still hovers above the 200-day EMA indicating bullishness in the long term. Moreover, the price trend analysis shows that the IBM stock price persisted in an inclining trajectory for the last two quarters. The stock price gained over 20% in the period. The stock price made its way from $120 to $150 in the period.
Recently, the stock price witnessed a heavy selloff while attempting to break above and declined. The IBM price then declined sharply below the 50-day EMA and consolidated followed by another breakdown below the recent swing low.
Analysts offering a 1-year price forecast for International Business Machines have a max estimate of $188 with an upside potential of $35.05 and a minimum estimate of $110.0 with a downside potential of 20.98%.
International Business Machines is an information technology company that engages in software, consulting, infrastructure, and other services.
IBM stock option-chain analysis states that the current implied volatility in the market is 26.40% with a decrement of 1.23% in the last trading session. The At-the-money strike has an OI of 1150 on the PUT side and 213 on the CALL side indicating the buyers dominating at the CMP.
IBM Stock Price Shows Breakdown After Accumulation
The IBM stock price currently trades at $139.21 and has broken below a two-week consolidation. The price has also broken below a positive trendline support. The stock price has turned negative in the short term and might decline more in the coming sessions.
The Wall Street analysts are expecting the IBM company to deliver a revenue of $14.779 Billion and expecting earnings of $2.135 Billion. An optimistic result may attract investors and the stock price may show gains.
The EMAs Shows Weakness In Short Term
The daily IBM stock price chart shows that the price slipped below 50-day indicating weakness in the short term. Moreover, the stock price trades above the 200-day EMA indicating the stock persisted bullishness in the long term.
The overall technical opinion rating including RSI and MACD is signaling a 24% “buy” with the weakest short-term outlook on maintaining the current direction.
Conclusion
IBM stock price has been bullish in the long term, rising from $120 to $150 in the last two quarters. However, the stock price has turned bearish in the short term, breaking below the 50-day EMA and a consolidation range. The stock price is currently at $139.21 and may decline further. Analysts expect a revenue of $14.779 Billion and earnings of $2.135 Billion for IBM. The stock price could reach $188 or $110 in the next year, according to analysts. The stock price is above the 200-day EMA, indicating a long-term positive trend.
Technical Levels
- Support levels: $136.73 and $133.31
- Resistance levels: $143.36 and $146.45
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/10/17/ibm-stock-price-forecast-can-200-day-ema-halt-the-fall/