By: Scott Redler
Research in Motion (RIMM) has been AWESOME! This chart is a lesson in Technical Analysis by itself.
Buy #1: was the RedDog Reversal on January 26th at $61.17. That was an outside day where the stock pushed through its prior low, triggered stops to steal longs, and trapped chasing shorts (that is the essence of the RedDog reversal).
Buy #2: This was when the stock broke its descending channel in the $64-65 area on February 2nd. Anyone trading this channel must have changed from bearish to bullish as the downtrend BROKE.
Buy #3: The bull flag–a nice consolidation after a move that holds highs and creates a pivot for another entry. This buy came on February 11th at $68.
Buy #4: This one is on the horizon and is the trickiest. When the stock continues higher, it’s always prone to some type of failure, BUT a trade through $72 on VOLUME will break this stock into a GAP that’s been left open since back in September. This momentum move can be fast and furious and I would take profits on this position into the move as EVERY last short gets squeezed.
This stock has been in my Morning Game Plan with buy levels since mid-January available to T3Live.com members everyday.
Some Schooling from REDDAAAWWWGGG
