In NFTRH 376 it was noted that I would be watching BBRY for a pullback in order to buy it back. That pullback has come about this week as BBRY has dropped right into a logical support area at the top of the bullish (bottoming) pattern we had reviewed in a previous update.
A couple of points here…
- For me personally and as noted previously, I view BBRY as a bet on John Chen’s ability to turn the company around from being an old fashioned handheld device maker to a software and mobile security company, with new generation devices the topping on the cake, if they succeed in gaining back at least some market share.
- I believe a bear market or at least an early 2016 bear cycle is taking effect (subject to a bounce as noted in yesterday’s NFTRH update). Despite this, my personal plan may be to hold some stock ‘picks’ (like BBRY) long vs. short positions and cash. That is why I bought BBRY back, not necessarily as a trade, although that is always possible as well, depending on the near-term trading action. I am not asking you to hold or not hold stocks in a bear cycle. I am simply stating that I believe a bear cycle is taking effect and that is serious business for any would-be investor.
Buy Target: 7.70 to 8.
Sell Target: Undefined as it could be a retest of the high, new highs or for me personally, 2 years down the road for a full-fledged company turnaround.
Stop Loss: Below 7.60 (strict) or 7.28 (December low, more lenient).
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.