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High volatility in BlackBerry Limited stock price on Wednesday which ended trading at $15.25

StockInvest.us, 6 months ago

BlackBerry Limited

The BlackBerry Limited stock price gained 31.92% on the last trading day (Wednesday, 2nd Jun 2021), rising from $11.56 to $15.25. , and has now gained 6 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the day the stock fluctuated 35.12% from a day low at $12.33 to a day high of $16.66. The price has risen in 7 of the last 10 days and is up by 73.89% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 261 million more shares were traded than the day before. In total, 338 million shares were bought and sold for approximately $5.16 billion.

Canaccord Genuity does not see either upside or downside right now giving BB "Hold" on their last update on May 05, 2021. The price target was changed from $9.00 to $10.00.Over the last 30 days, this security got 0 buy, 0 sell, and 1 hold ratings.

The stockhas broken the very wide and falling short-term trend up. Firstly a slower falling rate is indicated, but this may very well be an early signal of a trend shift. On the reaction, there will be support on the roof of the current trend broken, which is $10.70, a level that may pose a second chance to hit a runner. According to fan-theory $13.85 will be the next possible trendtop level and thereby pose a resistance level which may not be broken on the first attempt.

BlackBerry Limited

The BlackBerry Limited stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $10.50 and $8.98. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday, May 13, 2021, and so far it has risen 92.07%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 months Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.

On the downside, the stock finds support just below today's level from accumulated volume at $11.85 and $11.68.There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, BlackBerry Limited finds support just below today's level at $11.85. If this is broken, then the next support from accumulated volume will be at $11.68 and $11.56.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $4.33 between high and low, or 35.12%. For the last week, the stock has had a daily average volatility of 17.47%.

The BlackBerry Limited stock is extremely overbought on RSI14 (94). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.Since the BlackBerry Limited has been rising for 6 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.

BlackBerry Limited holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.

Check full BlackBerry Limited forecast and analysis here.