By Orbex
IBM Higher Pre-Market
Shares in IBM are trading higher ahead of the market open today. The company’s stock price has enjoyed a solid recovery rally off the 2021 lows with price recovering from around the mid-117 level to highs around 133 currently.
The company has benefitted recently from upgraded earning forecasts when it reports next on April 19th.
The market is now looking for an EPS of $1.68 which would mark a solid increase on the prior quarter’s results though a decline on the same quarter a year prior.
Will IBM Breakout?
IBM had a tricky 2020 as a result of the pandemic. The company’s share price recovered sharply off the initial 2020 lows around the mid 90 mark trading all the way back up to the 133 level.
However, IBM suffered a series of declines from subsequent tests of that level, unable to break higher.
Free Reports:
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
With price now quickly approaching that big resistance level again, the question is whether we will finally see a breakout or if the stock will once again reverse lower?
IBM Making Big Moves
IBM had some positive headlines this week with news that the company is licensing its software to a Swiss firm METACO which specializes in storing digital assets for financial institutions.
The move marks the latest in a series of steps that IBM is taking to up its presence in the digital currency space. Alongside this move, IBM has also reported that Deutsche Bank has engaged its services in building the bank’s cryptocurrency services.
IBM has been steadily probing deeper and deeper into the digital currency space since 2019. IBMs work with METACO is designed to help shore up defenses against digital hackers. This is in order to provide better security when acting as custodian for digital currencies.
With digital currency trading exploding as a result of the rally in cryptocurrencies over the last year, the call for enhanced software and safety provision is huge. This means that IBM is well placed to take advantage of this demand going forward, keeping the outlook firmly bullish for now.
IBM Approaching Key Resistance Test
The rally in IBM has seen price breaking above the 128.80 level. Price is now on course to make its fourth test of the 135.36 resistance level. A break above would be firmly bullish for IBM, setting up 145.67 as the next big target for bulls.
By Orbex
- AI Revolution and NVDA: Why Tough Going May Be Ahead Mar 28, 2024
- GBP Consolidates Amid Concerns Over Economic Growth and Wage Trends Mar 28, 2024
- The Australian and German indexes set all-time highs. The Reserve Bank of South Africa kept the rate at 8.25% Mar 28, 2024
- Target Thursdays: EURGBP, GBPUSD & Crude hit targets! Mar 28, 2024
- EURSEK: Hits fresh 2024 high at 200-day SMA Mar 27, 2024
- Australia has seen a decline in inflationary pressures. Japan may conduct currency intervention shortly Mar 27, 2024
- Australian Dollar Slides to Three-Week Low Mar 27, 2024
- Trade restrictions between the US and China are intensifying. Japan’s currency diplomats talk about possible intervention to support the yen Mar 26, 2024
- Japanese Yen Awaits Intervention Amid Weakness Mar 26, 2024
- NETH25 index chasing new record highs! Mar 26, 2024