We keep repeating this ad nauseam , triangles occur only in waves b or 4, nowhere else, so when you see one, or think you see one, you know where you are in a given sequence of patterns. But the market is very adapt at fooling you so the best approach is to look at the balance of the possibilities. If this is a triangle we should go down in wave e right away to around $15 to $14 ($13.50 max.). This would be a b-wave rather than a wave 4. Given its size that is a reasonable assumption at this point. A logical target would be at $20 as a very minimum going all the way to, possible, $26. A stop at $13 is warmly recommended just in case it turns out to be a b-wave within a wave 2 , shown in blue (see earlier blogs). You risk a dollar at the most if your stop is triggered and then you can try again somewhere around $10,50. If not your reward is about $5+ , or roughly 30%. The RSI is in line with this scenario and so is the MACD. Furthermore the CEO has just become a Canadian suggesting he is here to stay.

Despite the time it is taking, we will stick to the idea that we are tracing out a triangle that would ultimately call for a thrust of roughly $7, bringing the high to about $20/$21. Obviously this call will become more reliable once, and if, we have completed waves d and e. From here on we should not trade below today’s lows!

Here is BB again in detail. Wave e can go outside the triangle but not below wave c, which is about $13. The mouth of this triangle measures about $6.50. Add that to, say $13.50 gets you to $20. Sometimes the thrust will extend to a ratio of about 1.6X, which could take the stock to $24, not something you can rely on.

Blackberry is displaying typical “triangle” behaviour, sharp ups and downs within a relative well defined space with lower highs and higher lows. Wave e is still needed but could be short and depending on where it ends the target is approximately somewhere between the two (purple) lines, $20 to $21. The way to approach this is to try to buy it at $13.50 with a stop at $12.75 and sell (after getting filled of course) at $20. You risk 75cents for a gain of &6.50, a risk/reward ratio of 1 to 8.7

The possibility exists that we are, alternatively, in an a-b-c counter-trend correction. The a would then have been from 6 to 18 and the triangle is in fact the b. The pop up would then be even larger than in the long-term bullish scenario above, which makes that trade even more exciting.