RIMM Research in Motion Daily Chart

RIMM chart shows the Jan-Feb negative divergence that forecasted all the trouble ahead of time. The doji candle at the top shows the importance of candlestick analysis. Previous weekly chart shows the downward channel in place, daily chart above shows the short term downward channel with lower lows and lower highs, and this morning will definitely create another lower low. Pre-open targets 200 MA support at 56.5.

If that is lost, RIMM is in even bigger trouble. Key support levels at 60 and 58 will fail today leaving the 56.0-56.5 area the line in the sand level of support that price must hold, otherwise, the stock will tumble towards 49 over the coming days and weeks. Gaps at 55 and 52 are targets should the key 56.0-56.5 support fail. As we move towards summer time, 49 is reasonable and even a move under that towards a gap fill on the weekly chart at 42. The 41-49 area provides much more reasonable valuations. As price falls in coming days, use the 60, 58 and 56 levels as S/R. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.