Stock Chart BBBB

Stock Chart Analysis BBBB

Blackboard Inc.(Public, NASDAQ:BBBB)

The markets had a strong day today, although on lower than average volume. Advancers led decliners by a healthy margin, as the rally was fairly broad. With most stocks up, it makes you wonder about the few stocks that were lower today. If a stock can't finish positive on a day when the indexes move over 2.5%, than it's a not so subtle clue that supply is greater than demand.

BBBB is a stock showing some recent weakness after a strong move higher off the November lows. BBBB rallied over 50% in that span, but in the grand scheme really only managed to set a lower high. It recently fell out of the trading range it established on the rally, and has been consolidating tightly under the 50 and 200 day moving averages. The breakdown from the trading channel came on a very high volume gap lower, and BBBB reversed today after attempting to fill the gap. There is still the possibility that BBBB closes the gap, but the flag pattern it is building is typically a continuation pattern. I am watching BBBB for a break out of the lower boundaries of this pattern for a possible short sale, with a stop above the range.


Good Trading,

Joey