Is Now The Time To Buy BlackBerry? Technical Levels To Watch

BlackBerry Ltd. BB shares lost ground Wednesday amid worse-than-expected fourth-quarter sales results.

The stock looks to be approaching a potential support on the daily chart.

BlackBerry pulled back 9.74% Wednesday, closing at $8.43.

BlackBerry Daily Chart Analysis: In the daily chart above, BlackBerry looks to be trading in a channel.

The price level of $8 looks to have been an area of resistance before the stock was able to find support near this area.

This is an area the stock is now approaching and looking to make a rebound.

The price level of $12 is somewhere the stock previously struggled to cross above. This area may hold as a resistance in the future.

The stock is trading above the 200-day moving average (blue), indicating the stock still has bullish sentiment long term. This indicator is a potential area of support.

Bullish technical traders would like to see the stock bounce off the $8 level and start to form higher lows up toward $12. If the stock can break and hold above $12, it may see a further upward move in the future.

See also: How to Buy BlackBerry (BB) Stock

Bearish technical traders would like to see the stock fall below the $8 support level. If the stock is able to consolidate below this level it may see a further push to the downside.

A bearish trader may see the line that connects the highs sloping downwards (red) to the $8 support level, and call it a “descending triangle” pattern. If the stock falls below $8 with consolidation, the price may move lower.

Photo courtesy of Blackberry.