BB closes within previous day's range after lackluster session
BlackBerry Limited (BB) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BB ended the week -2.47% lower at 4.73 after losing $0.08 (-1.66%) today on low volume, strongly underperforming the S&P 500 (1.05%). Trading $0.04 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 23rd, BB lost -3.53% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BB as at Jul 10, 2020):
Friday's trading range has been $0.11 (2.31%), that's far below the last trading month's daily average range of $0.18. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BB.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices broke below the key technical support level at 4.75 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 4.69 in the previous session, the share found buyers again around the same price level today at 4.70.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the close-by swing low at 4.69 where further sell stops might get triggered. Further selling could move prices lower should the market test June's nearby low at 4.59.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for BlackBerry. Out of 204 times, BB closed lower 52.45% 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 57.35% with an average market move of -1.72%.