2016-08-31 15:05:15

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

Financial performance:

Index – DJIA, S&P 500; Beta – 0.62;
Capitalization - 177.42 В Assets profitability - 11.9%;
Revenue - 13.19 B; Average volume – 5.23 М;
P/E - 12.95; ATR – 3.21.

Analytical review:

  • The Company has the biggest capitalization in the IT technologies sector among the issuers listed on the US stock market.
  • Its stock edged up over 5% over the past three months. In early August, the issuer formed key support and resistance levels: 158.25 USD, 160.15 USD and 163.05 USD. This week, the company has retained a support level of 158.25 USD. IBM's quotes may continue growing.
  • The Company published a positive corporate report on the second quarter of the fiscal year 2016 in mid-July. The technological giant's results exceeded market expectations and encouraged investors. IBM's revenue amounted to 20.24 billion USD against a forecast of 20.08 billion USD. The Company announced a net profit of $2.95 per share, which exceeded analysts' expectation of $2.87 per share.
  • Financial multipliers suggest that the issuer's global ascending trend may continue. IBM's P/E Ratio (12.95) is much lower than an average value in the industry (19.90) and in the sector (17.70).
  • IBM would be appropriate for realization of long-term investment strategies. The company regularly pays out dividends to its shareholders. The company's dividend profitability (3.51%) is much higher than competitors' (1.88%).


  • The latest report has consolidated investors' confidence in the company. The company's revenue and net profit exceeded analysts' expectations. IBM's growth potential is quite significant. Multipliers point out that a positive trend for the company may continue.
  • Thus, we expect that the company's quotes will be rising in the nearest future.

Trading recommendations for International Business Machines Corporation's CFDs

Key levels:
Support levels: 158.25 USD, 153.45 USD
Resistance levels: 160.15 USD, 163.05 USD, 164.75 USD

Medium-term trading, H1
The issuer is currently trading near the demand zone of 158.25-159.00 USD. Once this zone steadies and relevant confirming signals appear (Price Action patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 161.50 USD, 163.00 USD and 164.70 USD, with Trailing Stop applied

Medium-term trading, H1
Medium-term trading, H1

Short-term trading, M15
The issuer is currently trading between the local support and resistance levels of 159.25/160.15 USD. We advise you to search for market entry points once these levels are broken and tested. Positions shall be opened in the direction of the signal line and the nearest support/resistance level. Risk per trade: no more than 3% of equity. Stop order shall be placed a bit above/below the signal line. Prospective profits shall be fixed partly, at 50%, 30%, and 20% of a prospective fluctuation, with Trailing Stop applied.

Short-term trading, M15
Short-term trading, M15