Shares of BlackBerry (BB) are up around 15% today in reaction to Thursday night's earnings' report. While this should be pretty exciting and may prompt some headline readers to buy, the gains look less impressive to technical analysts who are looking for sustained trends.
Let's check out a few charts.
In this updated daily bar chart of BB, below, we can see that prices have moved back above the 50-day and 200-day moving average lines. Because of the scaling on this chart our indicators are not showing much change. Trading volume does not look super strong. If we zoomed in for a closer look, we could see a slight pick up in volume since Monday. The OBV line and MACD oscillator have yet to move.
In this daily Point and Figure chart of BB, below, we can see that price reached a downside price target. Prices have not moved enough to generate an upside objective.
Bottom line strategy: Young commentators on TV might get hot and bothered about a 15% rally in a stock, but technical analysts typically want some perspective and not a "sound bite" for the next 15 minutes. BB needs to show me more before I am willing to recommend it to our subscribers.
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The company is set to report earnings after the close Tuesday.
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