Stock Chart Analysis PALM

Posted by downtowntrader | 9/28/2009 11:10:00 PM View Comments

Stock Chart Analysis PALM
Palm, Inc. (Public, NASDAQ:PALM)

I'll have to admit, I am a little surprised by the recent strength in PALM. It looked like the stock was getting tired back in June after the exhaustion gap on huge volume, and for the most part it was. PALM proceeded to pullback to its 50-day moving average in July, and then lost that level as support a few weeks later. It really looked like PALM would end up making a trip to test its 200-day moving average near $10, but PALM held support near $12.50 as it traded in a broadening wedge. PALM cleared the wedge on huge volume and then followed through with a move to new highs. It's since come off those highs but remains perched near the July high and the upper end of the established trading range. An ideal situation would be for PALM to consolidate in this area for a few sessions and establish a nice low risk entry point, but even in a less than ideal situation, PALM warrants being watched at this point. PALM is trading at multi year highs and has 39% of the float held short, and that could be a nice recipe for a short squeeze.

Good Trading,


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