- Summary:
- IBM stock price has been on a downtrend in the last week, but a surprise package in Wednesday's earnings release could accelerate volatility.
IBM stock price was up in Tuesday’s pre-market session as investors positioned themselves for its quarterly earnings release. IBM Corp (NYSE: IBM) was up by 0.3 percent on the daily chart at the time of writing, trading at $232.10. IBM will announce its third quarter earnings on Wednesday, and is forecast to report revenues of $15.07 billion and EPS of $2.22.
The company launched the latest version of its Granite software, which businesses can use to build Generative AI tools. This underlines its readiness to make its mark in the AI sector, which is forecast to record exponential growth in the coming months and years. The Granite 3.0 is available in open-source and supports 112 programming languages and 12 natural languages.
IBM stock price has been trending downward in the last week and is currently about 2 percent below its all-time high price of $237. However, it still has a bullish undercurrent, as its 20-Exponential Moving Average (EMA) is higher than its 50-EMA on the daily chart.
Also, despite the recent decline, IBM is still up by 42 percent year-to-date, and the recent decline in the stock price presents a good entry point for many investors ahead of the earnings release. That could bring tailwinds to the price in the intervening period. Conversely, lower-than-expected earnings could accelerate the decline.
IBM stock price prediction
IBM stock price pivots at 231.88, and the sellers will be in control if resistance persists at that level. That will likely see the establishment of the first support at 230.80. However, if the momentum strengthens, the stock could break below that level to find the next support at 229.95.
On the other hand, a move above 231.88 will signal bullish control. With the buyers in control, initial resistance could come at 232.85. However, if the upward momentum strengthens, it could breach the barrier and invalidate the downside narrative. Meanwhile, the upside could extend to test the second resistance at 234.00.
