Research In Motion ($BBRY) today lost one of its biggest customers, Home Depot. Home Depot has decided that they will go ahead and adopt Apple’s iPhone 4s as the phone they to had out to their managers. This is around 10,000 phones that RIM has lost and Apple gained. This might seem like a small number of units, but it’s not the first time BlackBerry has lost its customers to Apple. BlackBerry came back this year with its new phones, and is currently trying to regain the market share they once had, thus every single customer counts. This doesn’t mean BlackBerry will not be successful, however I am a little skeptical to their future success. I am not convinced that BlackBerry is a good long term investment yet, however this stock has been a great options play in the last week due to its high volatility and i think it will continue to offer some short term opportunities.
Looking at an hourly chart for the past week, we see that $BBRY has had a big run up for a week now since the introduction of the new ticker symbol. BBRY went up over $17 from $13 in just a week. It has been very volatile during this period, making it a great short term options play. However, we can see from the chart above that BBRY broke below the support level of this week’s upward channel. This indicates to me that BBRY could be heading down to the $14.70 level, to test the that support level. It will be very interesting to see how BBRY trades tomorrow for the first 30 minutes of trading. If it’s able to continue back up towards the channel then i could see a short term increase, however i don’t believe it will do so. My projections are that it will continue on a downward trend and test the $14.70 support level. If it breaks past it, we could see the $13s levels in the near future.
I will continue to follow BBRY and will keep you guys updated as investors start trading tomorrow. In the meantime, lookout for some options play opportunities tomorrow as i expect this stock to be very volatile.