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
for more analysis, check out downtowntrader.com
Stock Chart Analysis DRYS
DryShips Inc. (Public, NASDAQ:DRYS)
DRYS has been one of this years best performing stocks, with a bottom to top run of over 110 points. It has recently been in a correction, along with other dry shipping stocks. While it's too early to say if the stock completed it's correction, it is looking like it's ready to test the waters up above. It had a nice bounce off the 70 dollar mark up near $100, and then settled down nicely on it's 20 day sma. A higher high tomorrow may provide a nice entry with a target near $120. Of course nothing is set in stone as this is a game of probabilities, but with year end window dressing season upon us, and one of the years hottest stocks coming off a correction, I like the chances for this moving higher.
Good Trading,
Joey
for more analysis, check out downtowntrader.com
I'm feeling a little under the weather, so no charts tonight. The markets reversed course today and there are a few different scenarios that could play out. This really could just be a normal pullback off a rally high, or it could turn into a lower high which could then begin a primary bear market. The way I'm playing it is to honor my stops in my existing holdings that are acting well, while nibbling on the short side / inverse funds. A few short candidates I am looking at are JNY, RUTH, MRO, CAM, and YRCW. On the inverse fund side, I like DUG and possibly FXP.
Good Trading,
Joey
Stock Chart Analysis MCRS
MICROS Systems, Inc. (Public, NASDAQ:MCRS)
While I'm thinking the markets will have a pullback over the next few sessions, I am still bullish overall. MCRS is a stock that I can possibly buy in a couple different scenarios. If the market strength continues, then I can play MCRS as a triangle breakout with the recent bounce off the 20 day sma as a possible stop loss area. If the markets are weak, then I may look to buy MCRS towards the bottom of the triangle, since the odds are that this will prove to be a continuation base. If the second scenario presents itself, I would still look for it to turn back up before buying. In either scenario, the end result is to looks for the stock to eventually clear the current base and move towards $80.
Good Trading,
Joey
for more analysis, check out downtowntrader.com
