After publishing a disappointing first-quarter earnings of 2013 (Sales down -5.1% and -4.9% below the consensus estimates), the IBM' share collapsed by more than 8% on 19 April. However, the fundamentals of the company remain strong, and we are now back to an interesting entry point.

The profitability is improving with a net margin of 15.9% in 2012 and 18.3% estimated in 2015. Moreover, the leverage ratio Debt/EBITDA is expected to decrease from 0.84x in 2012 to 0.66x in 2015.

Technically, the security is in a negative configuration in the short term as the downward slope of the 20-day moving average shows. Nevertheless, the stock seems in an oversold situation, near to its USD 186 support in weekly data, corresponding to a bullish trend line as well as the 100-week moving average. This level might stop the bearish trend in the short term.

Thanks to the technical pattern, active investors can take a long position above USD 186. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at USD 215.8 in a first time. However, a bearish trend would regain the upper hand if the security crosses USD 186.