Why Blackberry's unlikely run may have come to an end

Blackberry wants to be cool again. And it's doing so by being square.

In a last ditch effort to save its struggling phone business, Blackberry unveiled its new device Wednesday called the "Passport," holding launch events in Toronto, London and Dubai. Unlike rivals that have rectangular designs, the "Passport" features a square screen and touch-enabled keyboard. This marked the company's first smartphone release under new CEO John S. Chen.

(Read MoreWho will sell you a BlackBerry Passport?)

But the new phone failed to impress BGC's Colin Gillis, who downgraded the stock to "hold" from "buy," and suggested the "Passport" may lack traction in the market. Gillis also cited the potential for underwhelming earnings results on Friday.

Shares of the Blackberry sold off more than 6 percent, but are still up around 35 percent on the year.

So, are there any signs the stock could turnaround?

Blackberry failed the key $12 level.

According to Tradinganalysis.com founder Todd Gordon, investors should look past Blackberry's gains this year, and really focus on its long-term trend. "The drop in the stock has been substantial," he said. "It's important to keep in mind that the stock has only retraced half of the decline in the past 18 months." Gordon noted that the 50 percent retracement level comes in at $12 per share, an area that the stock has failed to maintain.

Blackberry is testing the uptrend support at $10.

"The next level to look at is where the short-term trendline comes in around $10. If that fails to hold, selling pressure will accelerate and then there is little chance for this recovery story," Gordon said.

(Read MoreBlackBerry's 'Passport' to profit; Apple's bugs)

Chad Morganlander, portfolio manager at Stifel's Washington Crossing Advisors has little hope for the former highflier. "This isn't a growing company, it's not profitable and it's not well capitalized," he said.

Morganlander added that Blackberry is a perfect example of the obsolescence of technology. "In 2011, Blackberry had revenues of about $18 billion. They are now flirting with revenues of about $4 billion and they are losing money," he said. "As a value investor, I would suggest that you stay away from this stock."

Click on the video above for the full discussion with Morganlander on the fundamentals and Gordon on the technicals.

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