IBM stock rallies above $227 with $244 in focus
Capital rotation out of semiconductor stocks has supported IBM’s recovery and returned the shares to an important price zone. A break above $230.50 would open the way towards $244, although the risk of profit-taking is increasing.
Investors have reduced their exposure to semiconductor companies and rotated capital into previously underperforming Dow Jones stocks, including IBM, Salesforce and Boeing.
On 28 July, IBM shares gained 5.21% to close at $227.55, marking their fourth consecutive positive session. Trading volume reached 13 million shares, compared with the 50-day average of 12.2 million, confirming active buyer participation.
Strong rebound puts $230.50 breakout in focus
The scenario outlined in the previous analysis played out in full. IBM shares rebounded strongly from psychological support at $200, cleared resistance at $212 and $220, and then advanced above $227.The key resistance zone for today is $230–230.50. This area contains the boundaries of two unfilled price gaps formed on 20 May and 14 July.
A decisive breakout and daily close above $230.50 on elevated volume could accelerate the recovery towards the next resistance near $244.
However, the shares have gained more than 12% since 23 July, increasing the risk of slowing momentum and partial profit-taking near $230–230.50. A failed breakout attempt would raise the probability of a pullback towards support at $220.
Hedge fund selling could limit IBM’s recovery
Despite IBM’s recovery, positioning across the technology sector remains cautious. According to Goldman Sachs, hedge funds’ combined technology-stock sales over the past two months were the largest in the firm’s decade-long data series and comparable to the wave of position reductions seen in the summer of 2024.Goldman Sachs views the move as a “healthy reset” rather than a complete retreat from the AI sector. However, aggressive position reductions increase the risk of profit-taking in IBM near resistance at $230–230.50.
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