Blackberry shares have tumbled to the bottom of their long-term range, with price testing support around $9/share. A break below this floor would show that further losses are in the cards for Blackberry shares, especially since price has been forming lower highs since the start of the year.
The 100 SMA just crossed below the 200 SMA, confirming that a downtrend is underway. This could take share prices down to $7/share or lower.
Meanwhile, stochastic is starting to make its way out of the oversold area, suggesting that a bounce might still be possible. If buyers return, Blackberry shares could move up to the top of the range near $11/share. RSI is still pointing down, indicating that there’s enough selling momentum left.
Blackberry Shares Forecast
The company reported that it has been staying on track with its development goals but its financial results have been subpar. The Canadian company is betting on device-management software and phones aimed at a niche business-customer market.
Overall revenue tumbled 32% from a year earlier to $658 million in the quarter ended May 30 from $966 million a year earlier. Analysts were expecting $683 million, according to Thomson Reuters. Software and technology licensing sales showed a strong upward trend, rising to $137 million from $74 million in the preceding fiscal fourth quarter.
BlackBerry has set a target of $500 million in software sales for its current fiscal year. According to the company, it has 2,600 customer contracts for BES12 and other software in the latest quarter, including those who upgraded from previous versions. BES12 allows companies to manage BlackBerrys, iPhones and Android-powered smartphones used by employees on the corporate network.
Still, investors are waiting for the next set of earnings reports from the company to show whether or not it can stay profitable in the longer-run. Doubts that Blackberry can maintain its growth could lead to more losses for the stock.
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