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Sunday, September 19, 2021

International Business Machines (NYSE:IBM) Expected To Post Big Gains As The Market For AI Takes Off

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International Business Machines
Ticker: NYSE:IBM
Price: $131.49

Company News

IBM’s research division has long been a leader in developing artificial intelligence. The company’s most famous AI creation is its Watson computer. Named after IBM founder, industrialist Thomas J. Watson, the supercomputer can answer questions that are posed to it in plain language.

In 2011, Watson famously competed on the Jeopardy! quiz show against two of the program’s greatest champions (Ken Jennings and Brad Rutter) and won. Today, Watson-based programs are now being used across a range of industries — from helping to diagnose patients in hospitals, to forecasting the weather, preparing taxes and developing advertisements that resonate with consumers.

Earlier in October, IBM made a major announcement that the 109-year old company will break itself up so that management can focus more on cloud computing and developing artificial intelligence solutions under its Watson brand. The break-up will see IBM’s mainstay IT infrastructure services unit spun off into a new, as yet unnamed, company while IBM narrows its focus on cloud computing and AI products and services.

The decision was warmly received by Wall Street. IBM stock jumped 10% on the news. IBM shareholders are poised to reap even more growth over the next year once the company successfully transitions to making AI the center of its business. The median price target on the stock is $140 a share over the coming 12-months.

Business Summary

International Business Machines Corporation (IBM) is a technology company.

The Company operates through five segments: Cognitive Solutions, Global Business Services (GBS), Technology Services & Cloud Platforms, Systems and Global Financing.

The Cognitive Solutions segment delivers a spectrum of capabilities, from descriptive, predictive and prescriptive analytics to cognitive systems. Cognitive Solutions includes Watson, a cognitive computing platform that has the ability to interact in natural language, process big data, and learn from interactions with people and computers.

The GBS segment provides clients with consulting, application management services and global process services.

The Technology Services & Cloud Platforms segment provides information technology infrastructure services.

The Systems segment provides clients with infrastructure technologies.

The Global Financing segment includes client financing, commercial financing, and remanufacturing and remarketing.

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 131.23.

The projected lower bound is: 119.83.

The projected closing price is: 125.53.


A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 29.8442. This is not an overbought or oversold reading. The last signal was a buy 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 53.79. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 6 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 29. This is not a topping or bottoming area. The last signal was a sell 5 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 12 period(s) ago.

Rex Takasugi – TD Profile

INTL BUS MACHINE closed down -0.410 at 125.520. Volume was 30% above average (neutral) and Bollinger Bands were 23% wider than normal.

Open     High     Low     Close     Volume
126.800  127.350  125.080 125.520   1,595,545
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period     50-period     200-period
Close:           125.99        123.65        125.45
Volatility:      42            29            53
Volume:          1,474,556     1,191,297     1,473,819

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


INTL BUS MACHINE is currently 0.1% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods.

Our volume indicators reflect volume flowing into and out of IBM.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on IBM.N and have had this outlook for the last 8 periods.

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