BlackBerry Huawei Patent Deal

#BlackBerry continues retreat from mobile devices.

BlackBerry has sold 90 patents related to smartphone technology to Huawei as part of the Canadian firm’s ongoing retreat from the mobile phone business.

The company then known as RIM failed to adapt to changing market trends. Apple and Android manufacturers were able to offer more desirable handsets and eroded BlackBerry’s advantage in security.

The failure to launch a more modern operating system earlier than 2013 was the last straw and the company withdrew from the market in 2016.

Since then, the company has focused on the provision of mobile services and security, but CEO John Chen also wants to realise the value vast treasure trove of intellectual property it has developed. It is believed to have 38,000 patents in its library.

With that in mind, the 90 sold to Huawei represent a drop in the ocean. But some patents reflect key innovations developed by the company during its heyday such as the presentation of text and images on devices depending on its physical orientation and the geotagging of photos. However others reflect BlackBerry’s heritage in security such as the “sharing data to a group of devices.”

Some observers have questioned whether BlackBerry should be selling such IP to Huawei given it has attracted national security concerns among some of Canada’s allies.

BlackBerry closed up 1.670 at 9.110. Volume was 223% above average (trending) and Bollinger Bands were 38% wider than normal.

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the bullish or bearish trend reflected in the lower ribbon.

BlackBerry is currently 75.2% above its 200-period moving average and is in a downward trend.

Volatility is extremely high when compared to the average volatility over the last 10 periods.

There is a good possibility that volatility will decrease and prices will stabilize in the near term.

Our volume indicators reflect volume flowing into and out of BlackBerry at a relatively equal pace (neutral).

Our trend forecasting oscillators are currently bearish on BlackBerry and have had this outlook for the last 11 periods.

Our momentum oscillator is currently indicating that BlackBerry currently in an overbought condition.

Overall, the bias in prices is: Upwards.

A big white candle occurred.

This is generally considered bullish, as prices closed significantly higher than they opened.

If the candle appears when prices are "low," it may be the first sign of a bottom.

If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support.

Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.

During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles.

During the past 50 bars, there have been 23 white candles and 25 black candles for a net of 2 black candles.