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Gartner predicts that more than 70% of mainframe exit projects will fail due to overestimation of generative AI’s capabilities, according to Gartner.
The forecast appears in a post from the Gartner Newsroom. Details are available in the linked statement.
Gartner (IT) is trading sharply below its key moving averages on D1, with the current price of $133.58 well under the MA-20 at $157.45, MA-50 at $153.68, and MA-200 at $201.08. This configuration signals strong short-, medium-, and long-term bearish momentum, while the Ichimoku Kijun at $156.89 sits above the current price and acts as immediate resistance. Near-term support is seen at the MA-5/EMA-5 cluster around $143.11–$142.71. Key support lies at the MA-50 ($153.68). Immediate resistance is defined by the Ichimoku Kijun ($156.89), with further key resistance at the MA-100 ($159.62).
Momentum indicators on D1 confirm persistent bearish pressure, with MACD signaling a sell and ADX reflecting weak trend strength at 14.19. Oversold conditions are clear—RSI (30.22), CCI (–195.58), Stoch RSI (0.00), and BBP (–8.80) all indicate sellers dominating and a technically stretched downside. The Awesome Oscillator also aligns with the prevailing downtrend. Gartner has fallen $14.59 (9.85%) from a week ago, with the price touching the very bottom of its weekly range. Weekly volatility stands at 16.61%, and the tone is one of continued heavy selling. In today’s session, the stock slumped 6.09%, reflecting intense intraday liquidation and a market in search of meaningful support.
For the next week, the expected range is $127 to $140, reflecting the recent volatility while keeping the price band realistic and anchored near the 52-week low of $133.33 and well below the 52-week high of $409.76. With all relevant W1 indicators—MA-50, RSI, ADX, and MACD—firmly bearish, the probability of a further decline is very high (more than 80%), making a price rebound much less likely. Baseline scenario: Gartner consolidates in a sideways band near the bottom of the range. Bullish scenario: A move above $143 opens the door for a potential short-covering rally toward the MA-50 zone. Bearish scenario: A close below $133 risks fresh lows toward the $127–$130 support area, extending the downward trend.
Previously it was reported that Gartner faced persistent bearish pressure with limited prospects for a near-term reversal. Building on that outlook, traders should remain alert for any signs of a momentum shift, with the prevailing scenario still favoring cautious positioning until a clear breakout materializes.