This Day On The Street
Continue to site
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

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

NEW YORK (TheStreet) - When we profiled BlackBerry (BBRY - Get Report) 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BBRY $6.76 2.30%
AAPL $111.32 0.49%
FB $92.77 -1.30%
GOOG $645.48 0.63%
TSLA $241.44 -1.90%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs