Microsoft, Intel, IBM price analysis roundup

Written by: Stanko Iliev
March 29, 2021
  • Microsoft, Intel, and IBM continue to trade in a bull market
  • Newly reported COVID-19 cases are back on the rise
  • Worries over a third pandemic wave could add pressure on the financial markets

The U.S. stock market continues to trade in a bull zone, but the current risk/reward ratio is not good for long-term investors as the U.S. still needs to face the COVID-19 challenges. Newly reported COVID-19 cases are back on the rise, and worries over a third pandemic wave could add pressure on the financial markets.

A solid bullish sentiment is boosted by vaccine hopes as investors bet on a recovery that is expected to deliver the fastest economic growth since 1984. Federal Reserve raised its GDP estimate for 2021 to 6.5%, and coronavirus concerns were ignored by traders last several days.

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While stocks tend to perform well in March’s closing days, it is essential to say that many big companies will have a further drop in revenues and could face liquidity problems.

Fed Governor Christopher Waller said this Monday that the Federal Reserve will continue to support price stability and maximum employment but also reported that Fed would not keep interest rates low to help service the debt and to maintain asset purchases. The Federal Reserve increased its median projection for inflation and recently reported a decision to end its temporary easing of capital requirements for big banks.

“Because of the large fiscal deficits and rising federal debt, a narrative has emerged that the Federal Reserve will succumb to pressures to keep interest rates low to help service the debt and to maintain asset purchases to help finance the federal government. Deficit financing and debt servicing issues play no role in our policy decisions and never will,” said Fed Governor Christopher Waller.

Microsoft shares remain in a bull market

Data source: tradingview.com

When we look at the chart above ( one year period), we can see that this stock price has advanced from $150 above $245, and the current price stands around$235. The critical support levels are $220 and $200; $250 and $270 represent the resistance levels.

If the price jumps above $250, it would be a signal to buy Microsoft shares, and the next target could be around $260. On the other side, if the price falls below the $200 support level, it would be a firm “sell” signal and maybe a trend reversal sign.

Intel shares continue to trade above the $60 support level

Data source: tradingview.com

Technically looking, Intel shares could advance even more in the ongoing bull market, while the first sign of the trend reversal could be if the price falls below $55 support. If the price jumps above $70, it would be a signal to trade Intel shares, and we have the open way to $75 resistance.

IBM shares have found strong support above $130

Data source: tradingview.com

The current support levels are $130 and $120; $140 and $150 represent the resistance levels. If the price jumps above $140 resistance, the next target could be around $150, but if the price falls below $120, it would be a firm “sell” signal and maybe a sign of the trend reversal.

Summary

Microsoft, Intel, and IBM continue to trade in a bull market, but renewed worries over a third pandemic wave could add pressure on the financial markets. Federal Reserve raised its GDP estimate for 2021 to 6.5%, and a strong bullish sentiment is boosted hopes that the U.S. could have the fastest economic growth since 1984.