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globlchrtanlysis
globlchrtanlysis
P&P Score: 98.64   Points: 56.94   Accuracy: 20.00%   Average Pick Score: 28.47   Annual Return: 5.81% (11.22% since 6/20/10)  

globlchrtanlysis' Blog : Is RIMM Forming The Pattern Of Death?

Date July 17, 2010    Comments Comments (4)    Rate this post Recommend This Post (84)   
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Is RIMM forming the pattern of death?
Research in Motion appears to be forming the “pattern of death” and it could get especially ugly for this stock if the overall market doesn’t break out of its downtrend soon. Chart patterns like the one RIMM is forming are reminiscent of August/September 2008 just before the slide.
Why does the RIMM chart look so bad?
The old support levels broke severely and those levels have now turned into a wall of resistance. RIMM not only gapped through its old support but after giving us a weak, dead cat bounce, it was smacked right back down without much of a struggle. When the sellers are lined up at old support levels turning them into new resistance levels, this tells us the bears have a firm grip on this stock.

To enlarge chart click below


RIMM will most likely test its old lows again at $47 and doesn’t really have much support again until it reaches the $37 level again.
For those interested in shorting RIMM our first profit target would be at $47 with a stop around the $58 level. The overall market is hitting even heavier resistance and if it continues its expected slide and tests the July lows, stocks with bearish patterns like RIMM will get the worst of it and should easily slice through their near term lows.




Thanks

www.globalchartanalysis.com

Tags : RIMM   BEARISH   SELLOFF  

4 Comment(s):

Author JaiH     Date July 18, 2010 05:51 Abuse this post Report Abuse
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Nice analysis. At least someone there raising the red flag with TB shouting the buying oportunity of the year.
Author globlchrtanlysis     Date July 18, 2010 10:39 Abuse this post Report Abuse
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Thanks. Every trade has 2 sides to it so it's good to have people trying to pick a bottom as it gives the sellers liquidity. Not familiar with TB. I'll check out his analysis
Author JaiH     Date July 18, 2010 11:14 Abuse this post Report Abuse
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TB is short for TickerBandit. He is not talking about RIMM in particular, he is talking about markets in general. You can try to read his blogs if you wish.
Author JoeJustJoe     Date July 18, 2010 16:06 Abuse this post Report Abuse
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Using a chart technician's term for RIMM's 1 year chart pattern I would say it is >>> "loobing the trajecktory" (Copyright: 3J) .....which of course means it is making the "long term" path of least resistance (down of course, foo!) clear of ANY impediments to quick progress for future ghanilations. The panic at lower lows on the yearly chart is gonna make it much more difficult for long holders to grab onto sumphin on future trips down to my future target of sub $10 dollahs. :o I also ssssthink that RIMM will see at least $70+ dollahs befo it goes into >>> death dive mode with out ANY chance of rexscue. AAPL will also be in death dive mode whenst RIMM is trading at say sub $40 dollahs. *-) Intrustingly enuff the tech secter is holding up "ok" until Fri but methinks the Evil Empire of GS has sumphin in mind fer teck short term. Even a complete POS like Raaam butt (RMBS) will "probly" move 30%+ higher. :o For the wreckerd and since we are spekkin bout RIMM and "appear to be" discussing other playas also...I would also like to purrdickt that Rimmie fuggs up this quarter's "errrnuns" enduced trades as badly as he did last quarter's. "Hopefully" he'll keep the trumpets in the closet whenst he announces his >>> "new system"..... that only werks in practice :-) 3J
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