BB snaps to lowest close since April 11, 2017
BlackBerry Limited (BB) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BB ended the week -8.87% lower at 8.01 after losing $0.25 (-3.03%) today, underperforming the S&P 500 (-2.33%) following today's NFP report. Today's close at 8.01 marks the lowest recorded closing price since April 11, 2017. Closing below Thursday's low at 8.06, the stock confirmed its breakout through the prior session low after trading up to $0.10 below it intraday.
Daily Candlestick Chart (BB as at Dec 07, 2018):
Friday's trading range has been $0.42 (5.08%), that's above the last trading month's daily average range of $0.31. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BB.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
After having been unable to move above 8.36 in the previous session, BlackBerry ran into sellers again around the same price level today, missing to move higher than 8.38.
Crossing below the lower Bollinger Band for the first time since October 10th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 8.80 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on October 10th, BB actually gained 2.81% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the lower Bollinger Band" stand out. Its common bearish interpretation has been confirmed for BlackBerry. Out of 66 times, BB closed lower 65.15% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 57.58% with an average market move of -1.13%.