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RIMM - Research In Motion Trade Setup - UPDATE
Posted: August 26, 2008 at 10:30 pm by Chuck
The trade we identified on August 23rd has confirmed. The chart below provides additional details for anyone who took the trade.
Technorati Tags: Research In Motion,RIMM
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Hey Chuck,
I see something different in your short trade with RIMM. If you look at the weekly charts the weekly MACD histogram is rising from a bottom and is about to cross the 0 line. The weekly slow stochastic is around 60 and rising. The daily chart show a huge recent multi month rise in the MACD histogram, which usually signals higher prices ahead. The weekly charts override the daily chart’s message. Plz be careful with this short. I have a feeling that this is a pullback to value zone based on 11 & 22 day ema’s.
just my 2 cents
Myles, thank you for your thoughts. However the rules of the overall market remain in force. And that is ‘bear market rules apply’. The ascending wedge pattern break is a strong technical indicator. The short term moving averages are not something that I am concerened about at this time as my time frame for the trade to reach the target is weeks out. Always keep it simple.. Don’t underestimate the importance of pattern confirmations.
Hi
I also agree with Myles , i think RIMM short trade is a bit early at this stage, especially there is no volume accompany with the dropped price.
Hi
I put my hat down for you . chuck. RIMM is a good candidate for short
I see what you are looking at Myles, and understand your interpretation of the chart. Much higher prices are very unlikely for RIMM at this point, but the very short term entry point for a “short” is a judgement call. Long term I see RIMM reaching the target Chuck pointed out.
By the way, really appreciate your input, it helps everyone!