Earnings Play International Business Machines

Circuit board
Blue avatar for FOREX.com guest contributors
By :  ,  Financial Analyst
On Monday, International Business Machines (IBM) is expected to report second quarter EPS of $2.12 compared to $3.17 a year ago on revenue of approximately $17.6B vs. $19.2B last year. IBM is an information technology company and on July 16th, the company announced a collaboration with Verizon Communications (VZ) to work together on 5G and edge computing innovations in an effort to help enable the future of the Fourth Industrial Revolution.  

Technically speaking, on a daily chart, at the start of this week IBM's stock price broke to the upside of a short-term falling wedge pattern that began to form in early-June after price made its last peak at $136.00. A falling wedge is classified as a bullish pattern and the RSI is currently rising. Even though the moving averages are arranged in a bearish manner, price appears to be headed for the $128.00 resistance level. If price can reach that level it could bring in a new wave of buyers and push the price up towards its last peak at $136.00. The $115.00 level has been a strong support that has been holding up price since about April. Given the volatility in the current market, we could witness price chop around above the $115.00 level before seeing a break of the $128.00 level. However, if price falls below the $115.00 support, it is very likely that price will be pressured down towards the $105.00 level.



Source: GAIN Capital, TradingView

Open an account in minutes

Experience award-winning platforms with fast and secure execution.

Live Trading Webinars

Our interactive webinars, led by our industry experts, come highly recommended and can help provide your trading with the edge it needs.
Economic Calendar