Dow component International Business Machines Corporation has carved strong support near $150 in recent months but has failed to clear that magnetic level, stuck in a complex trading range that has now entered its second year. Tuesday’s first quarter earnings report is unlikely to dislodge this neutral theme, with a March 20 pre-announcement reaffirming fiscal year 2018 guidancebut offering few major catalysts.
Even so, the old-school tech giant is well positioned to benefit from its blockchain and artificial intelligence leadership in coming years and finally mount overhead supply above $200 set into place more than five years ago. While that’s little solace for current shareholders waiting to get paid, it also means sidelined players can wait and watch for long-term signals that could offer a historic buying opportunity. (See also: Why IBM Will Go On Forever.)
IBM has been trading in a 40-point range for over a year, a holding pattern that’s unlikely to break following Tuesday’s earnings report. …read more
Read more here: IBM Earnings Unlikely to Break Trading Range