shares of BlackBerry (bb) – Get BlackBerry Limited Report traded poorly on Friday, down about 11% the day after the company reported earnings.
It comes on a tough day in the market as the S&P 500 is caught in a three-day slide after a monstrous 11-day rise.
However, given this stock’s trend, it seems unlikely that the overall market performance would have a major impact on this stock.
While AMC Entertainment (AMC) – Get AMC Entertainment Holdings, Inc. Class A Report and GameStop (GME) – Get GameStop Corp. Class A Report have both traded well recently — and the latter has been particularly good and is now planning a stock split — BlackBerry hasn’t seen the same performance as some of its other meme-stock peers.
BlackBerry stock is now down nearly 20% from this week’s high and nearly 30% year-to-date. Additionally, shares are down 67% from the 52-week high.
Now the concern is growing, will BlackBerry continue to make fresh 52-week lows?
Trading BlackBerry stocks
BlackBerry stock daily chart.
Chart courtesy of TrendSpider.com
Looking at the daily chart, I see that BlackBerry stock has a real tendency to switch between support and resistance at certain levels.
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While this trait isn’t necessarily unique to BlackBerry, it’s quite pronounced in this case. Check out how $9.50 moved from support to resistance. The same thing has happened to $8 now, which the stock rejected a few days ago.
BlackBerry stock is now turning down on bearish earnings reaction and has fallen below the 10-day, 21-day and 50-day moving averages.
With the continued selling throughout the session, shares are also trading below the 61.8% retracement of the current range.
If the stock continues to decline from here, it could have $6 written on it.
That’s about where the uptrend support (blue line) comes in as BlackBerry has twice seen sharp bounces from the $5.80 to $5.90 area in the last two months.
At this point, BlackBerry isn’t a stock I want to hold for long. It’s not just fundamentally difficult, the technology doesn’t play along either. In fact, the specs are down.
At a time when we have companies with bullish fundamentals and bullish technicals — or at least one of the attributes — why pick a stock with both?
An earnings gap could come into play back above today’s high, but again, I’d rather look elsewhere for opportunities. If Blackberry recovers, there’s a good chance others will too.