In October 2019, the BlackBerry Ltd stock (NYSE: BB) fell to the 4.86 hurdle, which was last time tested 16 years ago, in August 2003. Since then, the share price has been on a gradual rise. From the technical side, on December 20th, it managed to open with a decent upside gap, which led to a break of its medium-term downside resistance line drawn from the high of March 29th. At the same time, BB is now trading above a newly established medium-term upside support line taken from the low of October 10th. That said, lately, BB was seen struggling with further advances, as the 200-day EMA continues to keep the price down for now. In order to consider higher areas, we need to see a clear break and a daily close above the 6.82 barrier first. This is why we will stay somewhat positive, at least for now.
If eventually we see a daily close above the 6.82 zone, which is the current highest point of January, this would confirm a forthcoming higher high and the next potential resistance area that we may consider could be near the 7.40 mark. That hurdle is the low of September 23rd, which if fails to withstand the bull pressure could open the door towards the 7.75 level, marked by the highest point of September.
Looking at our oscillators, the RSI and the MACD, both seem to show signs of topping. That said, for now the RSI is above 50, which may still be seen somewhat as a positive. The MACD is well above zero, but recently pushed fractionally below its trigger line. Although the indicators are near their highs, they are currently more on the flat side, which makes us slightly cautious, as a small setback could be possible before a potential uprise.
Alternatively, if the price suddenly falls back below the aforementioned upside line and the 5.62 hurdle, which is the low of December 19th, this may force a few investors to liquidate some of their positions. Such a move could put more pressure on the stock, and it might end up sliding to the next support area between the 5.19 and 5.33 levels, marked by the lows of November 20th and December 3rd. If there are still no new buyers at that area, a further decline could send BB to the previously mentioned 4.86 level.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2020 JFD Group Ltd.