Current trend

The securities of the global giant in the field of development and sale of hardware software, IBM Corp., are trading in a corrective trend, being at the level of 143.00.

The company continues to actively integrate artificial intelligence (AI) technologies into its processes and plans to provide training in new technologies to 2 million of its employees by 2026; it is also going to replace approximately 7,800 jobs in back offices with AI models. IBM Asia-Pacific VP Paul Burton believes that the strategy of actually turning customers into AI creators can significantly improve productivity. In addition, IBM Corp. undertakes to protect clients from any legal risks associated with intellectual property, stating that its AI technologies are fully protected from this.

The company will publish its report on October 25, and so far analysts expect a decline in indicators: total profit of USD 14.78B (USD 15.5B in the previous quarter) and earnings per share in the range of USD 2.14 (USD 2.18 earlier). However, investors continue to be attracted by rather high dividends, which reach 4.5%–5.5% yield per quarter. The date of the new payment will be determined closer to the publication of the report, but we can already say that it will amount to USD 1.66 per share, which is equivalent to 4.75% of income.

Support and resistance

On the D1 chart, the instrument continues to trade within the global ascending corridor with dynamic borders of 151.00–138.00.

Technical indicators that hold the sell signal continue to weaken it: the range of fluctuations of the EMAs on the Alligator indicator continues to narrow, and AO histogram forms ascending bars, holding below the transition level.

Support levels: 140.00, 134.00.

Resistance levels: 145.00, 150.00.

Trading tips

If the global growth continues and the price consolidates above the local resistance level, at around 145.00, one can open long positions with the target at 150.00 and stop loss below the resistance level, at around 143.00. Implementation time: 7 days and more.

In the event of a reversal and continued decline of the asset, as well as price consolidation below the support level, at around 140.00, one can open short positions with the target at 134.00 and stop loss at 142.00.