BB closes within previous day's range after lackluster session
BlackBerry Limited (BB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
BB ended the week 2.71% higher at 4.54 after flat today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BB as at May 22, 2020):
Friday's trading range has been $0.12 (2.64%), that's far below the last trading month's daily average range of $0.20. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BB.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on April 24th, BB gained 5.45% on the following trading day.
Prices are trading close to the key technical support level at 4.46 (S1). After having been unable to move lower than 4.50 in the previous session, the stock found buyers again around the same price level today at 4.48.
BlackBerry shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 4.78 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 4.46 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for BlackBerry. Out of 131 times, BB closed lower 56.49% of the time on the next trading day after the market condition occurred.