Current trend

Shares of IBM Corp., a giant in the field of development and sale of hardware software, are moving in a correction trend at 198.00.

During the Hot Chips 2024 technology exhibition, management revealed details of two new developments: the IBM Telum II processor and the IBM Spyre accelerator, designed to increase the computing power in the next-generation IBM Z systems using artificial intelligence (AI). Thus, the IBM Telum II processor will have a 40.0% increase in cache memory, as well as a built-in accelerator for data processing, which may be in demand for processing financial transactions. IBM Spyre is additional computing power for the IBM Telum II processor, and when used together, it can significantly reduce the time it takes to process requests.

Amid the positive dynamics of the corporation in the field of development and promotion of equipment with AI, financial indicators are gradually returning to stable levels. According to the latest report, revenue was 15.8B dollars, exceeding 15.5B dollars in the same period a year earlier, and earnings per share (EPS) increased from 2.18 dollars to 2.43 dollars.

Support and resistance

On the daily chart, the price is moving within an uptrend, correcting in the ascending channel 200.00–193.00.

Technical indicators are maintaining a buy signal: the EMA fluctuation range of the Alligator indicator remains wide, and the AO histogram is forming correction bars above the transition level.

Resistance levels: 200.30, 211.00.

Support levels: 194.90, 181.70.

Trading tips

Long positions may be opened after the price rises and consolidates above 200.30, with the target at 211.00. Stop loss — 194.00. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 194.90, with the target at 181.70 and stop loss 199.00.