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Watch Out For These Important Technical Levels In BlackBerry

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Watch Out For These Important Technical Levels In BlackBerry
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After a big post-earnings move on Thursday, BlackBerry Ltd (NASDAQ: BBRY) stock was up another 5.5 percent Friday. The stock’s 21 percent three-day surge has gotten technical traders’ attention, and BlackBerry’s upward momentum may have some very important technical levels in play in coming days.

BlackBerry stock reacted very positively to a surprise quarterly profit, and the company said it's working on an autonomous vehicle software deal that could potentially close by the end of 2017. In addition, the company provided positive guidance, projecting double-digit billings growth in mobile device management for the remainder of the fiscal year.

Technical traders see the tremendous volume behind BlackBerry’s two-day move as evidence there is some major backing behind this rally.

BlackBerry battled with the $11 level on Friday, but traders may instead be watching for resistance at the stock’s 52-week high of $11.74. A breakout above $11.74 would be yet another indication that BlackBerry’s 2017 rally is for real.

Above $11.74, the next resistance level may be $12.63, where it peaked in early 2015, or $18.32, its 2013 high.

BlackBerry shares have been drifting mostly sideways since the stock bottomed at $6.56 in 2012. The bottom marked the end of one of the most dramatic sell-offs in recent Wall Street history, a more than 90 percent decline over a roughly five-year stretch as BlackBerry’s legacy smartphone business fell victim to the Apple, Inc. (NASDAQ: AAPL) iPhone.

BlackBerry bulls are hoping the stock’s 59 percent year-to-date gain is a sign the next BlackBery bull market has begun. If the stock fails to break above $11.74, traders may soon be looking at $8.47 or even $6 as potential support as BlackBerry continues to tread water in the long term.

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A BlackBerry Priv smartphone. Courtesy photo. 

Posted-In: BlackberryTechnicals Tech Trading Ideas Best of Benzinga

 

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