The IBM stock price remains under pressure this month as investors focus on the upcoming financial results. It retreated to $292.45, a few points below the 2025 high of $325. It has formed a relatively bullish pattern, pointing to more gains in the coming weeks.
IBM stock price technical analysis
The three-day chart shows that the IBM share price has remained in a narrow range in the past few weeks. On the positive side, the stock has remained above the 50-day and 100-day Exponential Moving Averages (EMA).
Most notably, the stock has formed a bullish flag pattern, which happens after a big jump, which is then followed by a horizontal or descending channel.
The stock also remains above the Supertrend indicator, which is a common bullish continuation pattern in technical analysis.
Therefore, the most likely scenario is where the stock rebounds and hits the upper side of the flag pattern at $312. A move above that level will point to more gains, potentially to the next psychological level at $400.
On the flip side, a drop below the key support level at $280 will invalidate the bullish IBM stock forecast and point to more downside in the near term.
IBM stock price chart | Source: TradingView
International Business Machines to publish its earnings this week
IBM, commonly known as the Big Blue, will be in the spotlight this week as it publishes its financial results on Wednesday.
These results will come a month after the company announced its Confluent buyout in a deal valued at over $11 billon. Its buyout will help it strengthen its enterprise AI solution by adding Confluent’s data streaming solutions.
Wall Street analysts believe that IBM’s business continued doing well as demand for its solutions rose. The average estimate is that its revenue rose by 9.43% in the fourth quarter to $19.2 billion. That figure will bring its annual revenue to over $67 billion, while its earnings per share (EPS) moved from $10.3 to $11.35.
The most recent results showed that IBM’s revenue rose by 9% to $16.3 billion. This revenue was driven by its infrastructure business, whose sales rose by 17%. Its software revenue rose by 10%, while its consulting jumped by 3%.
IBM’s consulting business is benefiting as companies assess ways to introduce generative AI into their businesses. It helps them to design and implement these solutions.
The company has become a major player in the automation, hybrid cloud, and hybrid infrastructure solutions. It ended the quarter with over $14.9 billion in cash and marketable securities and over $63 billion in debt. Wall Street analysts have a hold rating on the stock. The average IBM stock forecast among analysts is $305, up slightly from the current $292. The most recent rating came from JMorgan, who maintained its outlook for the stock from $290 to $312. Other analysts from companies like Stifel, Bank of America, Evercore, and Wedbush.
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