BlackBerry Limited : Near a graphics acceleration
Entry price | Target | Stop-loss | Potential |
---|
CA$10.55 |
CA$12.2 |
CA$10.4 |
+15.64% |
---|
Even if there were a decline in its share nearly 17% since the beginning of the year, the Canadian company specialized in mobile hardware and software, has an extremely low valuation suggesting a continuation above important technical levels tested recently.
Despite disappointing results for the previous year, the Surperformance ratings highlights that fundamentals are solid. Indeed, in terms of enterprise value, the company is currently worth 0.99 times its sales. Furthermore, net income per share is expected to grow for fiscal 2016.
Technically, the potential decline appears limited by the supports area located at CAD 8.05 in daily data and CAD 8.33 in weekly data. These levels has contain the downward tendency and consequently see their strengthened technical pertinence. The stock now shows a bullish configuration supported by the well-oriented moving averages.
Given these elements, a long trade will be initiated above CAD 10.7 resistance, also corresponding to the crossing of the descending trendline. It could allow an upward acceleration in direction of CAD 12.2 resistance. This line will be our objective with a potential gain of 10%. A stop loss can be set near CAD 10.5 level.
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