BB finds buyers at key support level
BlackBerry Limited (BB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BB finished the week -3.16% lower at 5.83 after losing $0.17 (-2.83%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 5.83 marks the lowest recorded closing price since December 19, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 5.95, BlackBerry confirmed its breakout through the previous session low after trading up to $0.16 below it intraday.
Daily Candlestick Chart (BB as at Feb 14, 2020):
Friday's trading range has been $0.22 (3.67%), that's far above the last trading month's daily average range of $0.16. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BB.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 5.79 earlier during the day, the share bounced off the key technical support level at 5.81 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Tuesday, BB actually lost -1.94% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Its common bearish interpretation has been confirmed for BlackBerry. Out of 636 times, BB closed lower 51.42% 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 53.93% with an average market move of -0.39%.