BlackBerry Ltd (NASDAQ:BBRY) is Close to Technically Bullish
There are all kinds of things happening with BlackBerry Ltd (NASDAQ:BBRY) at this time, but I want to make something very easy to understand. In order for Blackberry investors to make money the stock price needs to increase, so ultimately, no matter what is being said by analysts or being reported by the media, price matters most. To some people, those headlines are what drive share prices, but ultimately it is the decisions of investors, short Sellers, and new money that affects the supply and demand for shares of Blackberry, so the most important thing for Blackberry shareholders is to pay attention to price.
There have definitely been some positive dynamics recently, anyone who bought the stock near $6.00 per share is certainly pleased too, but Blackberry is facing a major headwind at $8.20. In order for Blackberry shareholders to make money the stock is going to need to break above that level, and it is going to need to hold that break.
If the stock breaks above $8.20 and it holds there will be a relative magnet attracting the stock to its consolidation range, whose midpoint is around $10.00 per share.
Although our opinion is that blackberry can go much higher than that, and the valuation of Blackberry shares at current levels and even at $10.00 per share are attractive after cash is excluded, we do recognize that Blackberry shares will also face additional technical hurdles in the near term if the first and most immediate hurdle, at $8.20 is broken.
Importantly, at the time this was written, Blackberry shares were not breaking above $8.20, but it was close, so essentially that was still holding as resistance, and if that's true the stock will not be able to move higher. It is plain and simple, based on price, and actionable.
If BBRY breaks above $8.20 and holds, consider it bullish.