Blackberry stock price could rise 50% more from here
The Blackberry share price could be the next beneficiary of the meme share rally. After the recent Gamestop and AMC rallies, BB could be next in line.
Blackberry (BB) was last trading at $ 11.56 + 14.80%.
In January, Blackberry was one of the most notable artists. The stock gained 300% in the second half of the month, as retail traders jumped into the traditional tech action. The popular WallStreetBets Reddit forum had named the struggling stocks ripe for a comeback.
Like Gamestop (GME), AMC Entertainment Group (AMC), and a host of other downtrodden stocks, Blackberry had gained traction on the infamous investment forum.
The surge in retail buying had pushed the stock price from $ 6.52 to $ 28.77 in the first four weeks of trading in 2021.
There had been positive developments for the company. The favorable outcome of an ongoing legal battle with Apple (AAPL) was followed by the announcement that Amazon would work with the company to develop a new cloud-connected smart vehicle platform.
In addition, the company has also monetized its intellectual property portfolio and sold a deluge of patents to Chinese phone maker Huawei.
However, the rise in Blackberry stock prices was unsustainable and quickly came back to earth.
After parabolic rises in a handful of memes stocks, brokers and exchanges implemented policies aimed at limiting prices. Several large hedge funds had found themselves on the wrong side of Gamestop’s business and suffered multibillion dollar losses.
This led to the collapse of GME, forcing the liquidation of many other popular WallStreetBets titles.
Between late January and May 13, Blackberry fell -70% to $ 7.71. However, the latest revival of Gamestop and AMC has brought Blackberry back to the forefront.
Blackberry Stock Price Outlook
Recent price action has been very encouraging for Blackberry investors. We can see from the daily chart that the 200-day moving average at $ 7.72 has reversed the recent sell-off.
Since then, the title has gained just under 60%. This took the Blackberry stock price above the 100 DMA to $ 10.36. Another positive sign for the price.
On the bright side, the next level to watch is the mid-March high of $ 12.52. If the price can reach that level, I see a good chance of an extension above $ 18.00, around + 55% more than last night’s close.
Nonetheless, volatility will be high and prices will be under the microscope of regulators. With that in mind, if the market closes below the DMA 100 at $ 10.36, it would negate my immediate bullish outlook.
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BB daily chart
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