Blackberry shares could be due for a quick bounce as price is testing a key support area at the 50 simple moving average. Take note that this indicator has served as a dynamic inflection point for the stock price.
MACD is still moving lower, reflecting enough selling momentum to take the price lower. This could bring Blackberry shares to the next support area at the the 200 SMA, which is around the $8.40/share level at the moment.
RSI, on the other hand, has already crossed below 50 and is showing signs of moving back up. In this case, price could bounce from its current levels until the psychological $10/share level for Blackberry shares. A stronger rally could lead to a move up to the previous highs at $11.50/share.
Blackberry Shares Forecast
Blackberry announced recently that its Secure Work Space for iOS and Android, the company’s new security solution, received STIG approval, or Security Technical Implementation Guide approval, by the U.S. Defense Information Agency, which is part of the defense department. This could lead to strong gains for Blackberry shares if the deal pushes through.
“BlackBerry is the only Enterprise Mobility Management provider that can secure a multi-platform environment based on varying levels of risk and compliance, from meeting the strictest requirements with BlackBerry 10 to providing the most flexibility with support for third-party devices,” said John Sims, Blackberry’s President of global enterprise.
With that, the path of least resistance for Blackberry shares is to the upside, pending any influences in financial market sentiment. US equity performance has lagged in the past weeks as geopolitical risks all over the world weighed on risk-taking and took its toll on higher-yielding equities.
However, news reports indicate that tensions have been subdued recently, leading to a potential pickup in risk appetite and equity performance later on.
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