IBM Rallies to 8-Year Trendline Resistance

IBM Rallies to 8-Year Trendline Resistance

International Business Machines Corp. (IBM) has rallied to 8-year trendline resistance for the second time this year, setting up the fifth breakout attempt since the tech behemoth topped out in 2013. A short-lived June breakout trapped new shareholders in an ugly reversal that dropped the stock to a 5-month low less than 3-weeks ago. A successful advance should attract widespread attention, marking the end of IBM’s historic fall from grace.

The company is scheduled to spin off legacy divisions from a new faster-growing entity prior to year’s end. ‘Software’ leads the new segment list, underpinned by Red Hat and the “adoption of its OpenShift hybrid platform” while ‘Consulting’ will focus on digital strategy and design as well as 3rd party relationships. In addition, the ‘Infrastructure’ segment is expected to post flat revenue, comprised of IBM Systems (IBM Z, POWER, Storage), along with IaaS + Infrastructure.