By Andrew Nyquist    Watching Blackberry (BBRY) stock slow motion car crash over the past five years or so brought about many “do I try to catch a falling knife” trader moments. Every time anyone thought the stock couldn’t go any lower, it did. Major obstacles included stubborn management, an ever evolving and competitive landscape, and Apple euphoria and multi-year domination. However, just as all good things must end, so shall all bad things… or at least, that’s Blackberry’s hope (and investors). BBRY stock has dug its way out of the grave and is trying to capitalize on some additional breathing room. And, as a follow up to Max Moore’s well-written contrarian take on Blackberry stock valuation and prospects, here is my quick skinny on BBRY technical analysis and trading setup.
The charts below are annotated and fairly self explanatory. However, here is a quick recap of my BBRY technical analysis and setups in the charts below:
- The longer-term chart shows a nice rounded bottom that is also a part of an inverse head and shoulders (or cup and handle), that, if triggered, would likely bring about significant gains… or at a minimum, a nice defined risk / possible high reward entry.
- The upside move in late 2012 included heavy volume. This was likely due to a heavy dose of short-covering, but nonetheless, the rise was on increased volume (a positive).
- A wedge-like formation has formed near-term that if broken to upside would bring test of neck-line ($18), and if broken to downside, would bring test of lower shoulder/handle ($12)… and possibly the 200 day moving average, as it’s rising quickly).
BBRY Technical Analysis- Blackberry 3 Year Chart
BBRY Technical Analysis – ZOOM Near-Term Setup
And Nice move on the ticker change. The enormous flush during 2011 and 2012 brought in new investors. A new ticker is kind of like a new investment… and with Apple losing a little luster, investors are hoping Blackberry takes advantage of the breathing room and opportunity.
Thanks for reading. Trade safe, trade disciplined.
Twitter:  @andrewnyquist and  @seeitmarket
No position in any of the mentioned securities at the time of publication.
