This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

BlackBerry Shares Break Out: Must-See Technical Charts on Earnings

NEW YORK (TheStreet) - When we profiled BlackBerry (BBRY) Wednesday in "BlackBerry, Pier 1, Rite Aid, Darden: How to Trade Before Earnings," we mentioned that that a positive reaction to earnings would begin an uptrend for the stock above its 200-day simple moving average at $8.20.

When discussing the weekly chart we indicated that a close this week above its five-week modified moving average at $7.78 would shift the weekly chart to positive.

Well, that's happening. BlackBerry reported an earnings per share loss of 11 cents before the opening bell on Thursday, beating analysts estimates by 17 cents.

Let's look at the daily and weekly charts to judge how far the stock can climb and what the risk is if the stock falters -- as it has so many times in recent years.

More on BlackBerry: BlackBerry Financials Continue to Improve; Shorts Run for Cover

The daily chart shows that BlackBerry broke out above its 200-day simple moving average now at $8.18 on Wednesday, which was a sign that a positive reaction to earnings had a high probability.

Courtesy of MetaStock Xenith

Over the past two years, the stock traded as high as $18.32 back on Jan. 24, 2013, then gapped below its 200-day SMA on June 28, 2013. The stock traded as low as $5.44 on Dec. 10, 2013.

It was extremely important that BlackBerry stayed above $5 a share. Why? Many broker-dealers will not let investors own a stock below $5 on margin. A break below $5 would have triggered margin calls.

In 2014, BlackBerry traded as high as $10.90 on Feb. 25, and at that time was above its 200-day SMA. Many equity money managers cannot own a stock trading below $10, which was a warning when that level did not hold.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,114.79 +8.09 0.05%
S&P 500 1,998.03 -1.99 -0.10%
NASDAQ 4,565.5360 -5.1010 -0.11%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs