IBM stock price forecast bearish despite agreement with Amazon Web Services
Technical Analysis Summary International Business Machines Corporation: Sell
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Sell | |
| Donchian Channel | Neutral | |
| MA(200) | Buy | |
| Fractals | Sell | |
| Parabolic SAR | Sell |
Chart Analysis
The technical analysis of the IBM stock price chart on daily timeframe shows #S-IBM,Daily has breached above the 200-day moving average MA(200) as the price is retracing up after hitting three-week low two days ago. We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 128.38. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above the fractal high at 137.92. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic indicator signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (137.92) without reaching the order (128.38), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of -
IBM stock edged up after news the company signed Strategic Collaboration Agreement with Amazon Web Services. Will the IBM stock price resume advancing?
International Business Machines Corporation reported strong earnings on May 5: $14.2 billion in total revenue for the quarter, 2.6% above analysts’ average estimate, and forecast a mid-single-digit percentage growth for revenue for 2022. Stock price peaked and resumed declining afterward. Tow days ago IBM announced it signed Strategic Collaboration Agreement with Amazon Web Services. It will provide clients with access to IBM Software that runs cloud-native on AWS. Stock price closed up 1.2% over day after the news. Increased availability of IBM services is bullish for company’s stock price. However current setup is bearish for IBM stock.