How to play BlackBerry Ltd. (NASDAQ:BBRY) safely?

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Shares of BlackBerry Limited (NASDAQ:BBRY) last traded at $11.32. The company’s performance year to date is 64.30%. The 200 day simple moving average is 47.32%. The 200 simple moving average (SMA) is considered a key indicator by traders and market analysts for determining the overall long-term trend. The price level in a market that coincides with the 200 SMA is recognized as a major support when price is above the 200 SMA or resistance when price is below the 200 SMA level.

As per recent filings, BlackBerry Limited (NASDAQ:BBRY) has an insider ownership of 11.20%.

BlackBerry Limited is involved in the design, manufacture and marketing of wireless solutions for the mobile communications market. Its integrated hardware, software and services provide platforms and solutions for seamless access to information which includes e-mail, voice, instant messaging, short message service, Internet and intranet-based applications and browsing. The company operates in North America, Europe, Asia Pacific and Latin America. BlackBerry Limited, formerly known as Research In Motion Limited, is headquartered in Waterloo, Canada.

BlackBerry Limited (NASDAQ:BBRY) has been storming Wallstreet with solid press release. Recently, the company announced that according to the March 2017 study commissioned by RetailMeNot and conducted by Forrester Consulting, the company’s mobile marketing solutions generate a three-year, risk-adjusted return on investment (ROI) of 4.3x.

The Barchart Technical Opinion rating is a 100% Buy and ranks in the Top 1% of all short term signal directions. Longer term, the trend strength is in the Top 1%. Long term indicators fully support a continuation of the trend. The market is approaching overbought territory. Be watchful of a trend reversal.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oil prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The long term and short term EMA’s of 10.48 and 8.80 are lower than the current trading price suggesting a bullish pattern in both short term as well as long term. .

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 85.62 suggesting a bullish price action.

BlackBerry Limited (NASDAQ:BBRY) is all set to announce its earnings on Jun 30/b. As per Zack’s analyst ratings, BlackBerry Limited (NASDAQ:BBRY) currently has an average brokerage rating of 2.75. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:BBRY) is $8.468 with a high of $10.5 and a low of $7.

BlackBerry Limited BBRY was a big mover last session, as the company saw its shares rise almost 6% on the day. The upside occurred after the company was awarded $815 million in a dispute with Qualcomm.  Also, this led to far more shares changing hands than in a normal session. This continues the recent uptrend for the company as the stock is now up 16% in the past one-month time frame.

As such, while we believe BlackBerry Limited (NASDAQ:BBRY) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

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