You are looking at a WEEKLY chart of BBRY. Since my last published idea on this stock I made a couple slight adjustments to the chart.
1) I added "many false breakouts" to the Recent Resistance label
2) I added another uptrend line and adjusted the one that was originally there
3) I removed all the "mystery chart" stuff since the game was over as quickly as I posted the chart
Lets talk about the wedge that has been forming for almost 2 years now...
You will notice that the resistance line is just where it has always been. BBRY can't seem to get ( & stay ) above the $11 ish level. I guess the market doesn't think it is worth $11 at this point in time.
You will also notice there are two uptrend lines on the bottom of the wedge. The lowest one just represents worst case scenario lows while still being in an uptrend. If BBRY closes and stays below this lowest uptrend line I would be out of the stock. I may even consider a short position.
BBRY recently dropped to the mid $8 range. It turned out to be a great place to buy the stock. Notice the horizontal line labeled "Resistance becomes Support"? Yea, it happened again. BBRY came right down to that support and turned higher.
The higher of the two uptrend lines is a much more common support level. I consider this the actual bottom of the wedge. When BBRY touches this line it is like getting a green light to try a long postion with a comfortable stop. More times than not it goes up after touching this line.
Now remember, when BBRY closes above (and stays above) the wedge you can expect it to go higher. Or if BBRY closes below (and stays below) the wedge you can expect it to go lower. This is not a guarantee. It is just a general guide.
Let me give just one quick comment about the "rumors" swirling about BBRY's future. DON'T LET RUMORS INFLUENCE YOUR INVESTING...
Why? Because by the time you hear about the rumor, "the big boys" have already begun purchasing shares and pushed the price up. It the rumor turns out to be false, they will get out before you do. What does that mean? They will lose a little money but you may lose a lot of money. Rumors = Risk. Limit your risk.
Technical analysis gives us "little guys" an opportunity to play the market on a more level playing field. This wedge formation is technical analysis. If you saw the wedge when I posted my "mystery idea" about BBRY and decided to invest back then, you would already be in the stock.
1) I added "many false breakouts" to the Recent Resistance label
2) I added another uptrend line and adjusted the one that was originally there
3) I removed all the "mystery chart" stuff since the game was over as quickly as I posted the chart
Lets talk about the wedge that has been forming for almost 2 years now...
You will notice that the resistance line is just where it has always been. BBRY can't seem to get ( & stay ) above the $11 ish level. I guess the market doesn't think it is worth $11 at this point in time.
You will also notice there are two uptrend lines on the bottom of the wedge. The lowest one just represents worst case scenario lows while still being in an uptrend. If BBRY closes and stays below this lowest uptrend line I would be out of the stock. I may even consider a short position.
BBRY recently dropped to the mid $8 range. It turned out to be a great place to buy the stock. Notice the horizontal line labeled "Resistance becomes Support"? Yea, it happened again. BBRY came right down to that support and turned higher.
The higher of the two uptrend lines is a much more common support level. I consider this the actual bottom of the wedge. When BBRY touches this line it is like getting a green light to try a long postion with a comfortable stop. More times than not it goes up after touching this line.
Now remember, when BBRY closes above (and stays above) the wedge you can expect it to go higher. Or if BBRY closes below (and stays below) the wedge you can expect it to go lower. This is not a guarantee. It is just a general guide.
Let me give just one quick comment about the "rumors" swirling about BBRY's future. DON'T LET RUMORS INFLUENCE YOUR INVESTING...
Why? Because by the time you hear about the rumor, "the big boys" have already begun purchasing shares and pushed the price up. It the rumor turns out to be false, they will get out before you do. What does that mean? They will lose a little money but you may lose a lot of money. Rumors = Risk. Limit your risk.
Technical analysis gives us "little guys" an opportunity to play the market on a more level playing field. This wedge formation is technical analysis. If you saw the wedge when I posted my "mystery idea" about BBRY and decided to invest back then, you would already be in the stock.
