Blackberry (US) is back above $10.00 today, signalling that a recent correction has ended and its recovery trend has resumed. This strength appears particularly significant coming on a day that competitor Apple touched an all-time high. Blackberry had rallied in the spring but slumped after a deal between Apple and IBM suggested that Blackberry could face increased competition in its key corporate market. Recent gains suggest the shares have started to shrug off competitive concerns including that deal and the upcoming launch of the iPhone6 next month. Shares have responded positively that Blackberry has created a new division to separate its software, patents, cryptography and more from its hardware division. The recent correction bottomed out at a higher low well above $8.50 a 23% retracement level that has become new support. This week’s rally indicates its broader uptrend has resumed while RSI retaking 50 and continuing to rise indicates upward momentum is accelerating once again. Blackberry is currently testing the 38% retracement of its previous downtrend near $10.35. If it can break through there, its next key test could appear near $12.00 where a number of previous highs and lows, the resistance level for an ascending triangle pattern and a 50% Fibonacci retracement cluster together.
Chart Analysis: Blackberry
01:00, 20 August 2014