BBRY Stock: Testing the 200-Day Moving Average

BlackBerry Stock  The time has come to post an update on BlackBerry

BlackBerry Stock  The time has come to post an update on BlackBerry Ltd (NASDAQ:BBRY) stock, because just like the title is suggesting, BlackBerry stock is currently testing a very important price point. How BBRY stock reacts as this price point is tested will determine whether higher or lower stock prices are set to prevail.

For those who have not frequented my works, it is noteworthy to point out before I move forward that my views on BlackBerry stock have been generated by analyzing the BBRY stock chart. This method of analysis is known as technical analysis and it is based on using historical price and volume data to speculate on what the future may bring. I have spent nearly two decades studying and applying this method, and have had some great successes by doing so.

For instance, in April 2017, I outlined that there were certain technical developments on the company’s stock chart that suggested that higher stock prices were on the horizon. At the time that publication was written, BBRY shares were trading at $8.07 and they went on to appreciate by 45.48%, before BlackBerry peaked at $11.74.



BlackBerry Stock

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BBRY stock chart

Chart courtesy of StockCharts.com

The technical price pattern that is highlighted on the BBRY stock chart is a symmetrical triangle. This pattern is identified using two converging trend lines. The upper trend line represents resistance, while the lower trend line represents support.

Those who frequent my work already know that I am quite enamored with triangle price patterns. These patterns are quite special because they are known for their powerful breakouts.

The power of these patterns is a result of momentum being built and stored within the pattern as it develops. The higher lows and lower highs created by this pattern act like a coiled spring, and the momentum from that coiled spring is finally released when the stock price breaks above resistance or below support.

The following BlackBerry stock chart illustrates the important price point that is currently being put to the test.

BlackBerry price chart

Chart courtesy of StockCharts.com

BBRY stock is currently testing the 200-day moving average. This metric is created by averaging the stock’s closing price over the last 200 days and plotting that value on the stock chart. This metric is watched by many because it serves as a gauge to determine whether an investment is healthy or unhealthy.

Using the 200-day moving average is quite simple. If an investment is trading above the 200-day moving average, it is assumed that the investment in question is healthy and therefore trading in a bull market. Trading below the 200-day moving average carries the exact opposite implication, suggesting that the investment in question is unhealthy, and is therefore trading in a bear market.




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Jadtecnic

Richard Dambrosi (JADTECNIC) Has Been Sharing FOREX INVESTORS ANALYSIS FORECAST since 2011. Editors and Founder of InvestorsBuz.com, has a passion for Forex Social Sharing analysis and Market Trends Such as Self Driving Cars, Electric Cars, Medical Marijuana, 3d printing and Cloud computing, Refers to Readers as BUZ INVESTORS.

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