NEW YORK (TheStreet) -- TheStreet's Debra Borchardt met with Zev Spiro, chief market technician at Orips Research, to discuss some of the recent price action in BlackBerry (BBRY) and where it might be headed.
While BlackBerry has certainly been hot in the press lately with new products like the Q10 and Z10, the next day for big movement will likely be June 28, when the company reports its 2014 first-quarter earnings.
As Borchardt noted, the short interest has continued to climb, now up to 170 million shares, roughly 33% of those outstanding.
Spiro pointed out that this could lead to a substantial short squeeze if the company reports solid results.While the uptrend that started in September 2012 was broken in February, shares have been consolidating since, with sideways trading action on lower volume. This could lead to a breakout on the upside. Aggressive investors may want to add shares between $12 and $13.30, according to Spiro. Nevertheless, BlackBerry is a volatile name, which will likely see investors reducing their stake if the stock disappoints and breaks below $12. "Use that [$12] level as your line in the sand and eventually as prices start to turn higher, portfolios could add to those positions," he concluded. -- Written by Bret Kenwell in Petoskey, Mich. Follow @traderboy23 deo: http://www.thestreet.com/video/11943325/charting-blackberrys-future.html
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