International Business Machines Corp

IBM remains in a structural decline under Stage 4 with price below key moving averages, and the medium-term bias is bearish. Short-term price has extended above the rising 9EMA and 20EMA, indicating timing is unfavorable for new entries. We will defer execution and look to trim into rallies into resistance areas such as the 9/20 EMAs zone (approx. 235–238) and the 50-day SMA zone (approx. 238–243).

• ↑Operating EPS up 5% YoY; pre-tax margin expanded by 30bps
• ↑H1 free cash flow of $4.8B funds growth initiatives and dividends
• ↓Q2 revenue rose just 1% to $15.1B, reflecting weak top-line momentum