Blackberry Share Price Could Drop to $6.50 If the Triangle Pattern Plays Out

Summary:

The Blackberry share price could drop further if the descending triangle pattern on the daily chart plays out as expected.

The negative investor sentiment around the latest earnings report from Blackberry has not died out, leaving the Blackberry share price with a sluggish start to the 4th quarter of 2021.

Blackberry had reported 2nd quarter earnings that showed a revenue drop of 32% annualized, with an expanding net loss of $142 million compared to a net loss of $23 million in the same quarter in 2020.

The company has also shown stagnation in revenues in its cybersecurity division. The pandemic forced many businesses into remote work, enhancing the need for cybersecurity in critical industries such as banking and financial services.

Given that cybersecurity protection companies such as SentinelOne and Crowdstrike recorded outstanding growths in the quarter under review, the failure of Blackberry to capitalize on this need seems to be a lost opportunity.

Investors do not appear enamoured by the situation, and the Blackberry share price continues to see a gradual slump.

The recent lower highs on the daily chart have heightened the prospects for a decline in the Blackberry share price. A breakdown of the 9.47 support could complete the evolving descending triangle. This move brings 7.81 into the picture as a potential endpoint of the measured move. A further decline brings 6.54 and 5.28 into the picture.

On the flip side, a bounce on the 9.47 support could aim for the 10.84 resistance, putting the triangle’s upper border at risk. If this resistance gives way, the 11.91 barrier comes into the picture. This move also invalidates the triangle. 13.42 only becomes available if there is a price advance beyond 11.91.