Hi randall2580!
The first chart I drew today, had a low of $ 14.06/shr at that time, my last one is of course the end of the day. I have a 42 inch monitor and can do some decent charts on that but I was in a hurry to buy some more BBRY towards the close and slapped together a chart as fast as I could. Having said that, the lower uptrend line is clearly beginning to follow the 50-dma now and let's face it, the 50-dma is the premier support line at this time. We could see something just below the 50-dma as they try to push it through that milestone but it is nowhere near the $ 12.00/shr mark and you can bet that any future rallies in the stock will be muted if it ever breaks below that uptrend line. When a stock falls below its trend line, it is now a recovery stock where everyone that has ever owned it wants out on the rallies thus limiting its upside potential.
The area you talk about, the $ 11.50 to $ 12.00 area, is really support for the RSI as it would be reading 70 plus at that level and grossly over-sold. The problem we would have would be the destruction of the chart dating back to the Sept Double Bottom!!! If we lose that, we are going to trade sideways for months to come. One thing I should mention is that if we break below support or the 50-dma in this case, it has to confirm the trend change, that means it has to stay below the 50-dma for 3 or more days. To pop below it by Friday and then regain it on Tuesday means the trend is still up.
Here is the area you are talking about, it is clearly outside the boundaries:
Attachment 135783
In the past, we have dropped back to the uptrend line and bounced off it quickly, but a lot has changed this time around and I believe it is because our support occurs at much higher levels and is harder to justify. At the beginning of the rally it is easy to get a crowd to buy the stock but now we are much higher and hoping the company will do enough to get analysts to raise their targets. This is a dangerous game as we are relying on others to help the stock along. On top of all of this, the traders are heavily short the stock preventing it from going to crazy levels. They are now in control of the stock as there is no threat of news at the moment. I would like to see it stay within this channel for a month or so, see how the USA does on the launch and go from there. That would take us over $ 20.00/shr.. Will it happen? We'll know more tomorrow, but I have to say, it is ripe for a pop here back to $ 17.00/shr.
Sorry if my message is confusing at times, I pump these charts out quickly and get back to my trading. I really just want everyone to see that the stock is following a well defined trend here and we need to keep it intact. Good luck!