We highlighted Research in Motion Limited (RIMM) back in early January as a stock that had a tough go of it ince putting in highs of around $150 in 2008, but was setting up for a redemptive move at least back to 52-week highs in 2011.
(See: Wheels in Motion for RIMM)
The Blackberry maker has been beaten down by increased competition from and iPhone and Android-powered phones, which have grabbed a large majority of market share. But there remains a loyal army of Blackberry users who wouldn’t dare give up their BBM. RIMM has also been able to come out with a couple exciting new products, including a viable entrant in the tablet space with the Playbook.
As far as the stock is concerned, the selling pressure to be overdone in 2010, and the reverse head and shoulder bottoming pattern told us the stock was due for a bounce-back through the $64 level. The stock has made more than half of that expected move, and active traders can now look to start sizing down on the position while holding a portion for the full move back the $75-76 area.
*DISCLOSURE: No position
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