BlackBerry’s recent soft share price performance could continue into the new year with technical traders expecting strong support level at 8.50.
During November, BlackBerry (NASDAQ: BBRY) touched the upper-end of the 2014 sideways evolution when it reached 12.2. Many chose to take advantage of the higher movement; the selling pressure eased but the global market’s softer conditions have pressed downwards. The target now is the 8.50 support line. The point has rescued the share price twice during the second-half of 2014. It’d be the share’s minimum price in the close midterm. 11 is the next resistance level to any price recovery. BlackBerry Ltd is facing negative momentum indicators considering the RSI is trading below the 50-neutral point.
The MACD is lower than its signal line and BBRY shares trade below the 20 days and 50 days movement averages. The 20-day average is at 10.45 and the 50 days average is at 10.20.
The Spreadex Market View
Connorr Campbell at Spreadex shares his opinion on the global markets at the start of the last trading week of 2014. He says that Abe is winning big as oil dominates. Brent Crude oil is dominating the headlines, and Japan’s voters re-elected Shinzo Abe, who’s using the third of the “Abenomics” Three Arrows. While the Prime Minister of Japan will seek to implement a general structural reform and continue his plans for the Japanese economy, his victory in elections wasn’t as convincing as it seemed. The low turnout of voters and increased support from the coalition partners Komeito took the shine off the Prime Minister’s win. Connor says that the lack of enthusiasm over Abe’s win was felt on the markets as the Nikkei stock fell. And Tankan’s manufacturing index fell this quarter, with the Japanese businesses showing a discouraging economic climate in the country.
Connor shows that the only advantage for the Japanese economy was that the yen didn’t negatively react to the election and dropped to 118 against the USD. Although the fall was welcomed by the yen, it’s 10 points higher than before the QE announcement of the Bank of Japan.
As the update of the Japanese election arrived, Brent Crude oil was trying to shine through, after its last week’s end dismissal. Although it increased to $63 this morning from an open of $60 per barrel, oil hasn’t managed to hang on to price gains. Whether the gains are lost today, or at the end of the week, the short moment of positivity isn’t a marker of renewed health for the commodity.
Although the macro-future of oil isn’t looking well, this morning’s positivity has seen increases from the DAX and FTSE, as the markets seek to put last week’s record low behind them.
Connor says it’s a quiet day for the UK and the Eurozone data. The markets will seek a bullish sentiment from the USA, which sees an outbreak of figures announced for this afternoon. After last week had a mix of US data drive an overall disappointing week for the US market, the Dow and others will hope for a great start prompted by a positive round of figures.