IBM stock price is in a correction phase and down by approximately 10% from the recent swing high. It displayed a bearish pattern and declined by forming lower low swings.
IBM share price drops below the 50-day EMA and showcases that the short-term trend has turned down. However, the price is now at a 200-day EMA and buyers are trying their best to defend it.
In mid-October, IBM stock price broke the $140 support which hurt the investors’ sentiment and invited further decline.
The downfall took a halt near $135.00 and the price began to consolidate in a narrow range. It seems that the next directional move will be visible after earnings.
IBM released the earnings on October 25, 2023, after the market closed. So, the price will react to earnings in today’s session. The company reported an EPS of $2.20 and revenue of $14.752 Billion.
It beats the analyst EPS estimates by 3.56% and revenue prediction by 0.17%. In the pre-open tick, the stock price is up by 1.41%, which indicates gap-up opening is possible. Therefore, a short-term bounce back is expected in the coming weeks.
Will the Downfall in IBM Stock Price Continue?
IBM stock price is near to the demand zone and the presence of buyers is visible. If buyers succeed in defending the support level, then pullback toward the 50-day EMA is possible.
Till the IBM share price sustains above the $135.00 support, it will be risky to create fresh shorts. However, if the situation became worse and the price broke down to the $135.00 level, then it may raise concern for its long-term investors.
Moreover, the next round of sell-off may also be visible. The analysis suggests that IBM stock will spend some time in consolidation before deciding further direction.
Will IBM Share Price Consolidate?
IBM share price fell for five consecutive weeks showing the strength of the bears. In the coming session, it will not be easy for bulls to reverse the trend upward.
On the higher side, $143.95 will act as an immediate hurdle for the bulls. Until the $143.95 level, the price is likely to consolidate in an existing range.
The MACD curve in IBM stock slopes sideways indicating that the price lacked direction. The supertrend says, till the price is below $142.19, the trend will remain down.
Conclusion
IBM stock price corrected 10% from the recent swing high and eroded the previous gains. The quarterly earnings were released which were quite satisfactory. So, the stock price is likely to react positively in today’s session.
The analysis suggests that buyers are active near the 200-day EMA and a short-term bounce in IBM shares is possible.
Technical Levels
- Resistance levels: $143.95 and $152.05
- Support levels: $135.00 and $129.25
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets 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/2023/10/26/ibm-stock-price-analysis-will-ibm-stock-break-the-200-day-ema/