BB closes within previous day's range
BlackBerry Limited (BB) Technical Analysis Report for Dec 02, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BB ended Monday at 5.50 losing $0.07 (-1.26%), slightly underperforming the S&P 500 (-0.86%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BB as at Dec 02, 2019):
Monday's trading range has been $0.15 (2.69%), that's slightly below the last trading month's daily average range of $0.15. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BB.
Even with a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on November 7th, BB actually gained 0.18% on the following trading day.
Though BlackBerry is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 5.63 where further buy stops could get activated. Further buying might move prices higher should the market test November's nearby high at 5.73. Further selling could move prices lower should the market test November's close-by low at 5.20.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Its common bearish interpretation has been confirmed for BlackBerry. Out of 88 times, BB closed lower 57.95% 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 61.36% with an average market move of -1.22%.