BlackBerry Stock Must Fight To Hold This Key Level: Here's Why

BlackBerry Ltd BB was a top trending stock on r/WallStreetBets again on Thursday despite not having the typical characteristics of a Reddit darling. Although the Canadian cybersecurity and technology company has 39.98% of its stock held by institutions, the amount of its 511.41 million share float held short has dropped dramatically to only 0.66%.

On Wednesday, Canaccord Genuity upgraded the stock from Sell to Hold and maintained its price target of $10 based on BlackBerry’s future growth prospects within the cybersecurity segment of its business. The stock reacted positively to the news and closed the trading day up over 4%.

On Thursday BlackBerry was trading lower amid overall market uncertainty but holding above a key support level.

See Also: How to Buy BlackBerry Stock Right Now

The BlackBerry Chart: BlackBerry’s stock is trading down over 50% from the June 3 high of $20.17 it hit during a second massive short squeeze. The stock then entered into a steep downtrend that ended on July 19 when BlackBerry fell into a key support zone at the $9.59 mark.

Since then, BlackBerry has traded sideways in a tight $1.50 range between the lower level and about $11. The stock has tested support near the $9.60 level on six separate occasions and held, which indicates it's a key level for the stock.

BlackBerry opened lower Wednesday and fell toward the key support level again. If BlackBerry closes the day near the level, it will print a bearish closing Marubozu candlestick, which indicates lower prices may come. Bulls will want to see BlackBerry close up near its opening price to feel more confident BlackBerry will continue to hold its key support.

BlackBerry is trading below the eight-day and 21-day exponential moving averages with the eight-day EMA trending below the 21-day, both of which are bearish indicators. The stock is also trading slightly below the 200-day simple moving average, which indicates overall sentiment is bearish.

• Bulls want to see big bullish volume come in and drive BlackBerry up above all three moving averages. If it can regain the levels as support, it has room to trade up toward the $10.54 mark.
• Bears want to see big bearish volume come in and drop BlackBerry down below $9.59. If BlackBerry loses the level as support, it could fall toward $8.77.