2016-07-19 14:52:11

International Business Machines Corporation, #IBM [NYSE]
Technologies, Information Technologies, USA

Financial performance of the company:

Index – DJIA, S&P 500;
Beta – 0.62;
Capitalization – 177.42 В;
Return on asset - 11.90%;
Income - 13.19 B;
Average volume – 5.23 М;
P/E - 11.52; ATR – 3.21.

Analytical review:

  • The company ranks the first on capitalization among the issuers in the sector of “Information technologies” traded in the American stock market;
  • Since the beginning of June, company’s stocks have been rising. Currently, the rise exceeded 5.5%. Yesterday’s IBM report for Q2 of the fiscal year 2016 was positive, which will boost the price of the company’s stocks;
  • According to the company’s press-release revenue in the reporting period amounted to 20.24 USD against the forecast of 20.08 billion USD. EPS (earnings per share) was 2.95 USD against the forecast of $2.87;
  • At the press-conference company’s management said that results were higher than expected because of the development of the hi-tech sectors of the IBM cloud service and data analysis technologies). Company’s revenue in this sector exceeded 12%;
  • IBM plans to refocus business and invest large funds to the high-tech companies. During this year the company has acquired over 10 high-tech companies involved in the development of cloud and mobile services. IBM confirmed that net profit in the current fiscal year will be $13.5 per share.

Summary:

  • Company’s last report and positive forecasts increased investor’s confidence to the company. Company’s results exceeded market expectations. The company has strong growth potential. Successful implementation of the investment projects will boost the rise of company’s stocks.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of International Business Machines Corporation

Key levels:

Support levels: 158.65 USD and 155.40 USD.
Resistance level: 161.30 USD.

Medium-term trading, Н1

At the moment the issuer is traded in the demand zone of 158.65-159.35 USD. If the price maintains this zone and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 161.50 USD, 164.00 USD and 166.50 USD with the use of trailing stop.

Medium-term trading, Н1

Short-term trading, М15

At the moment the issuer is traded between the local support and resistance levels of 158.65/160.65 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions shall be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading, М15