While the rest of the market is higher today, Research In Motion Limited (USA) (NASDAQ:RIMM) is dropping. The Blackberry maker has had issue after issue. Whether competitors are taking business away, earnings are poor or countries are banning their phones, it seems to be always something. The stock is sharply lower again today even with the markets staging an impressive rally.
On the chart below, we can discover why the stock is so weak. Yesterday, a key break down took place. Note the white trend line. That level was $52.25. As soon as Research In Motion closed below that level, a break down to the next support was in swing. Note support #1 on the chart below at $49.50. This in the short term will work to hold the stock up and maybe even bounce it. However, in the next few weeks it will most likely break this level and continue south to the support #2 at $47.75. Finally, at this double bottom level the stock may find some solid support and be worth a buy. To get more analysis, swing trades, guidance and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
