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

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

Follow us in social networks!
Live Chat
Leave feedback