RIMM Research in Motion Daily Chart Falling Wedge Oversold Positive Divergence

What a beating RIMM has taken. As seen above, however, positive divergence is in place across all indicators, and, along with the falling wedge and oversold conditions, will bounce RIMM now. In fact, today would have been a good entry day at 36.20. The weekly chart is in shambles but so beaten down that it will also have to bounce, but, due to the weak weekly chart, price will head lower after this bounce in price occurs.

Targets for resistance overhead are shown with the red lines; 37.5, 39.0, 40.0, 42.5. The 200 MA probably places a permanent ceiling on this stock but perhaps if RIMM can pull itself out of the nose dive, it may receive a Christmas present later this year with price moving up towards the gap at 50 again, but you need to cross your fingers. With so many stocks available to play, the prudent idea is to stay away.

For nimble traders, a bounce is coming to make some dough quickly on this positive divergence launch that should occur now--but get out of Dodge fast shortly after the pop occurs. 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 financial advisor before making any investment decision.