Ever since ‘search and destroy’ short seller Citron Research put a buy on BBRY a couple years ago I have kept my eye on the stock, even trading it once in a while.  The key point of Citron’s bullish call was that Blackberry should phase out its eroding device business, which has been dragging the company down, and focus on software.  This clearly remains a turnaround situation for CEO John Chen, but the move away from manufacturing its own devices is a significant step.

Blackberry Calls it Quits on Making its Phones In-House

Lots more to read here.  Repeat, this remains a work in progress.  Fundamental DD should be done thoroughly by anyone interested in this stock.

As to the chart, the daily is very clear.  A successful break through resistance would target 10.30 by the measurement of the June low to resistance around 8.30.  MACD and RSI are both positive.

bbry daily chart

The weekly chart has a positive MACD, RSI and trend by AROON.

bbry weekly chart

I think this situation works better for investment oriented people than for trading.  It has been a long, drawn out affair nursing BBRY to this point.  The news at this moment, is more symbolic of what I think is the right direction for the company than it is fundamentally significant in the immediate-term.  Please do DD if interested, because there are a lot of moving parts to this story.

A final note:  It is certainly possible that BBRY could get knocked back down at some point to fill this morning’s gap and that could end up being the buying opportunity.  So a miserly would-be buyer might want to just keep that on radar just in case.  An investor could buy a starter position now and then plan to add on a pullback or a breakout.  Just riffing here.  There are a lot of options, including leaving it alone to see where it settles out.  I just wanted to call your attention to it because it is one we have talked about in the past as a unique turnaround situation.

Buy Target:  7.80 to 8.30 for anyone fundamentally engaged and very patient.  Or a breakout above resistance and a hold above it on any back filling.

Sell Target:  10.30 for a trade, long-term would be subject to emerging fundamentals of the ‘new’ company.

Stop Loss:  Again, it’s not really a trade but below 7.70 would be a ‘something’s wrong’ marker, which could be nothing more than an external situation like a sharp downturn in the broad market, for instance.  Those who buy a breakout could use a breakout failure below 8.20 (to suit risk tolerance).

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.