Fire up your handhelds like it’s 1999 people. Blackberry (BB) had an Investor Day yesterday. Here’s the kicker, we had it as a Zacks Rank #1 (Strong Buy) heading into the event. As obscure as this name has been lately, it trades nearly 10 million shares a day. Next year’s sales are forecast to come in 10.45% higher than this year and earnings are set to come in at 2 cents versus a 2-cent loss this year.
The chart, well, looks like you are poking a dead body with a stick. There have been a few spikes up, most notably on crazy short-squeeze action when the world was obsessed with Roaring Kitty. Down here at $2.49 it looks more like a stock destined for a reverse split in order to stay delisted. The numbers aren’t that outrageous when you compare them to other names out there. Price-to-sales this year is at 2.3x, a number that shrinks if next year’s growth comes through.
Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.
Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.
Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.
Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.
Dave Bartosiak's technical analysis approach adds depth to our understanding Blackberry’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
