Two traders gave their perspective on International Business Machines Corp. IBM ahead of the company’s Q4 earnings release following Tuesday’s close.
CMT Christian Tharp told Benzinga that "IBM has been trying to hold $155 since the beginning of 2015. If the company's earnings report causes that line to break, a test of the $150, 52-week low is almost certain."
Tharp indicated that a "break below that $150 should open the flood gates to more selling. On the topside investors should be watching $160, and then $165 above that for signs of higher moves."
Dr. Thomas Carr, founder and CEO of DrStoxx.com, told Benzinga that "IBM has been in contraction mode for months, on 9 quarters of declining revenues and sells of its less profitable server and semiconductor ventures."
Carr felt the "key to this report will be its new cloud-based services. Can they rescue its otherwise outdated business model?"
Ahead of the earnings release, IBM traded at $156.75, down 0.25 percent.
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