RIMM Trilogy
The first chart is the daily. As I mentioned yesterday, after testing the lower pivot point, I expected RIMM to bounce.Well, nothing comes easy in this market, so it took three trades to get this thing off the ground, but at the EOD we have a tweezer bottom reversal plus a bullish engulfing on the daily, so we are well positioned to retest the upper PP in the near-term. The only disappointment on the daily is the volume. It really felt like a lot more volume, especially in the last hour.
The first trade came shortly after RIMM retested yesterday's low and held. The TI scanner flagged 4/15 as NR7 and it was an IB, so I took a long on break of the previous IB. I set my stop on the 5 min. timeframe. Price retested the ORH and retraced sharply, so I exited the trade.
The second trade was a C&H pattern on the 5 minute timeframe. My target was the usual 100% Fib. extension from the low of the cup to the base of the handle. It failed to extend fully because of Fed speak.
At some point, IB crashed and I had to use the IB Web Trader. I really felt strongly that we would bounce before the end of the session, however, the choppiness intraday and broker problems were more than a little frustrating. Finally, RIMM carved out a tweezer bottom which set up the third trade.My initial target was yesterday's ORH, but I took a partial after three successive WRBs and moved my stop up to the midday swing high, after which I moved it below the shooting star. Sweet!
5 comments:
Hey, RIMM is MY stock ;-)
I could not be at my computer today so I missed this trading session altogether. Thank you for sharing this master trade. Congrats.
anarco
Anarco,
LOL, it might be yours, but I owned it today. ;)
Yes you did :-)
Nice call on the RIMM bounce. I'm still learning TA, and was wondering what made you believe that RIMM would bounce, and also what would have made you assume RIMM would go lower. I would have gotten nervous after seeing 100 fail intraday. i.e. if RIMM had gone below/closed below 98, would you go short assuming the stock would move to the low 90's? Thanks and great blog!
Chartguy,
If you read last night's post (HANS) click on read more, you'll see my analysis of RIMM.
Basically, we have the two pivot points plus a broken trendline. The dip from the upper pivot after the gap fill, is a retest of both the trendline and the lower pivot.
The base under the lower pivot developed over two months and looks pretty solid. That said, today AAPL announced that it will compete in the corporate market against the Blackberry so RIMM took a beating.
We'll see how this plays out in the coming days. Caveats such as bad news and analyst downgrades can derail a perfect technical setup, but as long as the lower pivot holds on a closing basis, RIMM still has a chance here.
Post a Comment