IBM stock slumps 8% on weak revenue figures

IBM (IBM.US) stock tumbled more than 8.0% after the computer hardware company posted weak quarterly figures. IBM earned $2.52 per share, slightly above market expectations of $2.50 per share, however revenue figures disappointed amid some weakness in the company's cloud business and a pullback in client spending. Revenues of the company's major business segments — Global Businesses Services and the Cloud & Cognitive Software rose 11.5% and 2.5% respectively, however both fell short of estimates.

IBM (IBM.US) stock launched today’s session sharply lower and broke below major support zone around $134.50 which coincides with 61.8% Fibonacci retracement of the downward wave  launched in February 2020, 50 (SMA), 200 SMA (red line) and long-term upward trendline. If current sentiment prevails, downward move may accelerate towards support at $117.00 which is marked with 38.2% Fibonacci retracement. Source: xStation5