Research In Motion Limited (RIMM) - Heading Lower
Research In Motion Limited (RIMM) is a stock that has been ignoring the current stock market rally and has been under heavy selling pressure. As you can see in the above chart, the stock has been making a series of lower highs and lower lows over the past several months.
Last week, RIMM consolidated forming what is known as a bear flag and on Friday broke down from this formation suggesting another leg down. Notice how the volume increased on Friday which helps confirm that this stock can expect further selling pressure in the days to come.
Research In Motion Limited (RIMM) closed on Friday at 44.12 which was down .90 (2%) from Thursday's close.
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5 comments:
Kevin, Wouldn't the fact that RIMM's reports quarterly results on Thursday 16th not effect this trade? Given that these results are likely to come midway through the period at which the trade is taking place?
I'm aware of the earnings report and I am actually short RIMM for the past few days. I'm not sure if I want to take this position into the report on the 16th. I guess it all depends on what RIMM does Tuesday and Wednesday which will determine what I will do.
Kevin, presumably your stop would be 46-47 for this trade?
Where would your technical target be?
I took the trade off early this morning when I saw the S&P was bascially flat but RIMM was moving higher. I was hoping to have a profit going into earnings but instead I took a small loss and am out of the trade.
Thanks for the update Kevin, much appreciated.
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