On November 18, I wrote about Research In Motion (RIMM). I pointed to a massive positive divergence on the daily chart. I also said that I thought RIMM still had quite a bit of work to do. Well, RIMM has been working very hard inside what looks like a descending wedge.
There has been quite a bit of selling. But the positive divergences are still building. Its performance against S&P has not been all that good.
Still, it’s a wedge, and a breakout, may provide, at the very least, a low risk trading opportunity.
Please take Note of the massive gap down of late October.
If I decide to play it, I may make the stop very tight.
I will end the post with the same ending remark from the November 18 post:
Do your own analysis, be the master of your own trade!
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2 comments:
i am still bearish on RIMM just based on fundamentals and on the economy. The technicals look good but the upside is minimal. Power to stop losses!
I understand your concerns
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