IBM Share Price Soars Nearly 10%

<img src="https://images.unsplash.com/photo-1562705121-e624542c7b9b?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDF8fGlibXxlbnwwfHx8fDE3MDYyNTcyNDB8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="IBM Share Price Soars Nearly 10%" /><p>As the chart shows, the closing price on January 24 = USD 173.79, closing price on January 25 = USD 190.19. At yesterday&apos;s peak, IBM&apos;s share price was above USD 196, helped by a strong fourth-quarter earnings report that was positive about the company&apos;s prospects due to advances in AI.</p><p>→ Total revenue was USD 17.381 billion, compared to USD 16.690 billion in the prior-year quarter.<br>→ The acquisition of Red Hat made IBM the fifth-largest cloud service provider by market share. This is very important given the industry&apos;s projected growth rate of 16% per year until 2028.<br>→ Advances in quantum computing, exemplified by the release of the 127-qubit Eagle quantum chip.</p><p>In addition, the company has increased dividends for 28 years in a row, making IBM shares attractive to a wide range of investors.</p><figure><img src="https://fxopen.com/blog/en/content/images/2024/01/261–3-.png" alt="IBM Share Price Soars Nearly 10%" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2024/01/261–3-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2024/01/261–3-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2024/01/261–3-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2024/01/261–3-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>Technical analysis of the IBM stock price chart shows that:</p><p>→ the price has reached the upper border of the parallel channel (shown in blue);<br>→ the RSI indicator indicates strong overbought;<br>→ a long upper shadow formed on yesterday’s candle – a sign of sales activity. It is acceptable to assume that some investors rushed to take profits in order to later find an opportunity to re-enter a long position at lower prices.</p><p>Indeed, given the chart situation, IBM&apos;s share price is vulnerable to a pullback following the extremely positive report. If a pullback occurs, the price may find support in the area between the psychological levels of USD 175 and USD 180 per share of IBM, where the 50% Fibonacci level of the upward impulse A→B passes. The channel median line can also help the bulls.</p>