The current market correction is expected to see a short bounce to the upside in the coming weeks, with a rally likely to be seen into May. However, a pullback is expected to follow that rally, with another decline anticipated from late May to late June. These movements are likely to complete the second quarter correction, with higher prices expected by the end of the year.
IBM is set to report earnings this week, with the stock currently appearing overbought in both monthly and weekly graphs. April has historically been a high for the stock, followed by two weak months, and the weekly price cycle is topping out at the same time as the earnings report. This suggests that the report may be met with selling, with a decline to at least $160 anticipated.
Xerox is also set to report earnings in the coming week, with the report likely to lift the share price. The daily bar chart for Xerox shows a flat stock, with momentum and relative strength in neutral territory. The monthly price cycle indicates that this range is about to end, with the cycle bottoming out as earnings are reported. This suggests a rally closer to $18 per share, with a history of profitable signals on similar reports.
Overall, the market correction is expected to see a bounce to the upside before a pullback and further decline into late June. IBM’s earnings report is likely to be met with selling, potentially leading to a decline in the stock price. However, Xerox’s earnings report is anticipated to lift the share price, with a rally expected to bring the stock price closer to $18 per share.
Investors should keep an eye on market trends and earnings reports in the coming weeks to navigate the current correction and potential bounce. Both IBM and Xerox are set to report earnings, with differing expectations for how their stock prices may be impacted. By staying informed and monitoring market movements, investors can make informed decisions about their investment strategies.
In conclusion, the market correction is likely to see a bounce to the upside before further declines, with potential opportunities for investors in the coming weeks. IBM’s earnings report may lead to a decline in the stock price, while Xerox’s report is expected to lift the share price. By carefully monitoring market trends and earnings reports, investors can make strategic decisions to navigate the current market volatility and capitalize on potential opportunities for growth.
