2 Technical Perspectives On IBM Ahead Of Q4 Earnings

Two traders gave their perspective on International Business Machines Corp. (NYSE: 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 Can they rescue its otherwise outdated business model?"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.