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Tuesday, April 03, 2012

RIMM - Better Bounce

What a roller coaster in RIMM.  I suspect both bulls and bears got whipsawed twice in the past 3 trading sessions.  Disappointing earnings after hours 3 sessions ago shook out weak bulls and trapped eager bears.  Then CEO's comments turned the sentiments 180 degree.  Bears got squeezed big time and bulls started to chase.  Today was just the opposite.  Bull's turn to get squeezed.  It's obvious that another class action suit is being drafted.

The lower trend line of the wedge stopped the bleeding into the close.   It's amazing the daily STO and RSI aren't anywhere near oversold.  The 60 minute chart is, but the corresponding MACD does not have any positive divergence.  It's best not to touch this hot potato.   Chart is still holding up as long as tomorrow closes higher  Otherwise, it's easy to see that 11 would be printed before April ends.

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