As a result, BlackBerry stock is hitting its highest levels since early October. Despite the big rally, investors are looking for more upside. Their hope is that the earnings report will be a strong enough catalyst to justify more upside.
BlackBerry reported earnings of 11 cents per share, 5 cents ahead of analysts' expectations. Revenue of $257 million topped estimates by more than $14 million (a beat by 5.75%) and grew 7.5% year over year.
Let's see how the charts look after the impressive numbers.
Trading BlackBerry Stock
BlackBerry stock is posting a strong move in midday Friday trading and bulls will want to see the stock close strong on the day. Before Friday's rally though, BlackBerry stock was holding the 50-day and the backside of prior downtrend resistance (purple line).
With the rally though, shares gapped up over the 20-day and 200-day moving averages, as well as a key level at $9.50.
On Thursday, we saw strong rallies in Lululemon (LULU - Get Report) and PVH Corp. (PVH - Get Report) , but on Friday those stocks are pulling back. Will BlackBerry experience similar profit-taking price action in the days to come?
If so, bulls will want to see the $9.50 level hold as support, with the hope that a rising 20-day moving average can eventually give it a further lift. Without a notable pullback though, bulls would love to see $10 buoy BlackBerry stock. Not only would this mark put BlackBerry over another potential level of downtrend resistance, but the 50% Fibonacci retracement for the 52-week range sits just under $10, at $9.97.
At this point, it's too early to say whether ~$10 acts as support or resistance. If it's support, bulls can target $10.75 on the upside, where the 61.8% retracement is. If it acts as resistance, the $9.20 to $9.50 level should support BlackBerry stock.Will You Have Enough Money to Retire?
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