Stock Chart Analysis RIMM

Stock Chart Analysis RIMM

Research In Motion Limited (USA) (Public, NASDAQ:RIMM)

Here is another of this years hot momentum stocks coming off a correction. While I'm not banking on RIMM heading to new highs, I wouldn't rule it out either. What is pretty clear to me is that RIMM is coming off the bottom trading range resembling a falling wedge. These can be bullish continuation patterns, but regardless of the ultimate success of failure of the overall pattern, it looks like it will at least attempt a move to the upper boundaries of the wedge. I mentioned in my DRYS post below, that this is also window dressing season, which I think helps a name like RIMM. Window Dressing is when funds pick up a stock that performed well during the year in order for it to show up in the end of the year holding report. This way they can show their investors how they hold leading stocks in their portfolio. Here is some more information on "window dressing". RIMM looks like it may fill that breakdown gap in the 110-114 area, which may also coincide with the descending trendline in a few days.

Good Trading,


Joey

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