BlackBerry Ltd. (BBRY) is a provider of mobile communications and services engaged primarily in the provision of the BlackBerry wireless solution consisting of smartphones, services and software. The stock is currently trading around $9.14 at the lower end of its 52 week range of $8.59-$12.63. The stock has been underperforming the market this year falling by 16.85% year to date. BBRY is scheduled to report earnings before the opening bell tomorrow, and the stock is very bullish today rising by $0.24 or 2.64% on the session ahead of the close.

Over the past 9 quarters BBRY has rallied on earnings day 5 times with an average move of 10.78%. The stock appears bearish on a chart going into the release having traded down below the Ichimoku Cloud for the past few weeks on the daily bars. Over the past 9 quarters BBRY has rallied from earnings to the nearest options expiration 3 times with an average move of 10.03%. The stock looks as if it could reverse its trend and rip to the upside further in today’s session. Investors are mainly seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. Other than this news BlackBerry continues to have an exodus of customers, but despite these rumors the company claims a strong customer base.

The options market is currently implying a move of around $0.73 or 7.9% in BBRY by this Friday’s close giving us targets of $9.86 and $8.41.

Andrew Keene

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