BB closes above its opening price after recovering from early selling pressure
BlackBerry Limited (BB) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
BB ended the week 2.61% higher at 9.42 after gaining $0.06 (0.64%) today, slightly outperforming the S&P 500 (0.5%). Trading up to $0.09 lower after the open, BlackBerry managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BB as at Mar 15, 2019):
Friday's trading range has been $0.22 (2.35%), that's slightly below the last trading month's daily average range of $0.23. Weekly volatility is also lower, being slightly below 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 prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After having been unable to move lower than 9.29 in the prior session, the market found buyers again around the same price level today at 9.28. The last time this happened on February 6th, BB actually lost -2.53% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 9.60 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for BlackBerry. Out of 605 times, BB closed lower 53.88% 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 51.90% with an average market move of -0.00%.