Once a standout on the Canadian stock market, Blackberry Limited (BB.TO) shareholders have demonstrated significant patience as the stock has continued to slide over the past several years. Recently, however, the technical outlook appears to be improving. Shares of BB.TO are climbing up the SIA S&P/TSX Capped Composite Report, currently positioned at #63 out of 220 holdings. This rise is highlighted in the attached position chart, where the stock had been languishing in the red "Unfavored" zone for many years. In the attached candlestick chart, where each candle represents one week of trading activity, it appears that BB.TO has finally broken through its downtrend line. However, volume remains subdued, leading many chartists to question whether this is yet another false start. Having fallen significantly, it is clear that considerable overhead resistance remains. This will likely be met with sellers eager to finally exit, especially as the tax-loss season takes full effect in the coming sessions. Overall, though, the stock has shown marked improvement and is in a better position technically than it has been in many years.
The next chart is a point-and-figure chart, which SIA uses as its primary tool. Unlike the candlestick chart, this chart still shows the long-term negative trend line at the level of $5.47, as highlighted in the red area. Additionally, the SIA report overlay tool indicates BB.TO’s positioning within the SIA S&P/TSX Capped Composite Report over time. While the stock has turned yellow, indicating an improvement in the SIA relative strength matrix, this is not the first time such a move has occurred. In the past, these advances were met with resistance from sellers, and the stock eventually retraced, losing its relative strength. Perhaps better left to the trading community for now, shares of BB.TO are volatile but have shown clear improvement. The stock currently boasts a perfect SMAX score of 10 out of 10, reflecting its near-term strength relative to other asset classes. BB.TO will be an interesting chart to monitor as 2025 approaches, and the long-term trend line levels will trigger SIA Alerts if penetrated. In the meantime, support is located at $4.15, $3.76, and $3.61.
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