Monday, July 19, 2010

Day Trade - Research In Motion Limited (USA) (Public, NASDAQ:RIMM)

RIMM carved out a tweezer bottom reversal pattern at the base of PDL setting up an opportunity to go long. As we can see from the wide range view of the 15 minute chart above, the reversal area coincides with a consolidation zone from last week's WR reversal bar. Price rallied back up to the ambush zone (50-62% retracement). After hours tech stocks TXN, IBM, ALTH sold off on weaker than expected revenues. So, the bias for tomorrow is short tech.

The next test of this support area will setup a short for RIMM. As we can see from the chart above, there's no support beyond $52.00, so there's a 2 point short trade if RIMM retests and fails to hold this support level.

2 comments:

Jim said...

Hey Jamie,

That was a sweet call you made in gold. The bear flag (GLD) just below the 50 and 20 day MAs has followed through nicely. Thanks.

Jamie said...

Thanks Jim,

I shorted ABX on the 50% retracement at $44.50 and covered half when it approached the 200 SMA daily yesterday. Stopped on the second half today. Euro weakening in the ambush zone giving a boost to Gold prices.