BlackBerry Stock Hangs At Support, Could Use A Bounce

Blackberry Inc. BB shares were trading higher premarket Wednesday but are down in the regular session. 

The stock looks to be trying to bounce off support in a technical pattern. The stock was trending on social media Wednesday morning.

See Also: How To Buy BlackBerry Stock

Blackberry was down 0.7% at $8.53 midday Wednesday. 

Blackberry Daily Chart Analysis

• Shares look to be bouncing off support in what traders call a falling wedge pattern and look possibly ready to climb back toward resistance once again. The stock will need to see above-average volume and an increase in the RSI for this to happen.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been fading lower the past couple of months and now sits at 32. This shows that slowly more and more sellers have entered into the market. This nears the oversold range and if reached the stock will be seeing much more selling pressure than buying pressure.

What’s Next For Blackberry?

Blackberry is beginning to near a key time on the chart as it sits near the possible support level. Bulls are looking to see this support level hold and for the stock to start to make higher lows and eventually break above resistance. A break above resistance may be the beginning of a long term trend change. Bears are looking to see the stock continue to trade within the pattern and eventually fall below the pattern support.