Base & Break - Reasearch In Motion Ltd. (USA) (Public NASDAQ: RIMM)

Today my trading strategy was to look for solid base and break setups based on a relief rally following last weeks' sell-off. As noted in my NASDAQ post, I'm looking at a possible right shoulder as part of a mini H&S top formation. The right shoulder generally has much less volume and can be quite choppy, so the need for solid setups is a must.

I stuck to my usual suspects list. Most trades didn't reach the full extension, but there were no losses.


The best trade was RIMM off of a near perfect three pivot base. I took a partial at the 100% Fib. extension of the reaction swing low to the base. This also matched up with 3 consecutive WRBs 15 min.

The second half extended to 1.62%. Sweet!

ESRX was a base within a base. The trade was very slow and didn't reach the full extension.

GRMN was a low risk setup at the same level as Friday's base, but it didn't do much until the last minutes of the session, but I had previously exited the trade.

FWLT was a NR base in line with Friday's C&H base. I was looking for a gap fill but time ran out.