Sunday, June 21, 2009

Friday's Trades - Research In Motion Limited (USA) (Public, NASDAQ:RIMM)

On Thursday we said the trade idea for Friday was RIMM, which had carved out a C&H pattern in after hours trade. The bullish pattern did not follow through the next day. RIMM opened weak and couldn't hold $76.00 so I started scaling in short. I added to my position after a series of NRIBs. The obvious target is $73.00. Why $73.00? Because that is the pivot where it formed a base and rallied in after hours trade the night before. That's not to say it can't go lower, but buyers will step in at $73.00, so it will pause or reverse. Knowing that, we want to book some profit. I closed my position because the trade was orderly but slow. The smaller bars as price approached the target are spinning tops, foreshadowing the end of the move.

FUQI continued its ascent in early trade, pulled back for an ambush setup. Price couldn't hold R2 (whole $ level) so I exit and decided to short. Price eventually retraced and found support at the rising 50 MA on the 5 minute timeframe.

2 comments:

bl said...

Jamie,
Nice trade on RIMM. I don't know why I didn't trade it, or some of the other premkt naz names.

Jamie said...

Thanks BL,

Most stocks on my WL chopped around but RIMM had direction.

Looking at Gold stocks going into this week.