Tomorrow after the market close, BBRY will report its quarterly earnings. The recent price actions suggest it might move to the upside. But with any news driven event, price movement could be volatile; especially on earnings report.
Looking at the daily price chart of BBRY, one can see it has attempted to break above the 8.20+ level couple times after the price has touched a low of 7.01. Today, it gap open above the resistance level near 8.20 and closed above it at the price of 8.29. During those two attempts on breaking above the 8.20 level, it formed an extended double bottom like price pattern with a measured move project price target near 9.36. This price target is close to the options market priced in move for a positive earnings report from BBRY, which is estimated to be 9.21. Furthermore, the options market also has priced in a downside move to 7.55 for a negative earnings report which is near the current 50 SMA level.
(click on the chart to get an enlarged view)
Turning our attention to the intraday chart, we see there is a large double bottom like price pattern in this time frame as well. The measured move from this double bottom pattern projects a price level near 9.17 which is again near the options market priced in move of 9.21, and the downside priced in price level of 7.55 is near a pivot high and a price gap level.
Currently I have a long position on BBRY and have been scaling out during today's session. Before the market is close tomorrow, I will not have a position on BBRY. My trading plan do not allow me to trade through earnings since the risk is undefined. Good luck to those that are planning to trade through BBRY earnings.
Disclosure: Long BBRY.
