BlackBerry Stock Price: Massive Bullish Flag Pattern Points to $20

Summary:

BlackBerry stock price has formed a bullish flag formation and now struggles to break above the upper resistance. $20 is back in focus.

BlackBerry has spent the month of June in a tight consolidation. The stock price has peaked recently at $20, but it remains bid while in a bullish flag formation. The measured move for the pattern suggests a move back above $20, but bulls need to wait for the flag’s breakout before going long.

The company just delivered its Q1 earnings report, and losses were in line with analysts’ expectations. The operating GAAP loss was $58 million and revenues fell double digits.

A quick breakdown of the revenue segments shows a decline in Cyber Security (10%), Licensing and other (58%), but a sharp increase in the Internet Of Things division (up 48.3%). Moving forward, the company’s focus is on Cyber Security and the Internet Of Things division, despite global chip shortage headwinds.

BlackBerry Stock Technical Analysis

A bullish flag is a continuation pattern. The market advances rapidly, in a vertical move, until it meets resistance. In BlackBerry’s case, the $20 level acted as resistance.

The consolidation during a bullish flag formation may be horizontal or against the main trend. In BlackBerry’s case, the consolidation is against the trend, but the target remains above $20 with a stop at on a move below $10.