RIMM Research in Motion Daily Chart Potential Island Reversal Inverted H&S Positive Divergence

RIMM daily chart is very constructive moving forward, it has paid its dues. The current outages are giving RIMM more bad press but the chart continues to say higher numbers are coming moving forward. Weekly chart is positively diverged as well. Current pull back should be short-lived and the upside will begin again. Note the small inverted H&S with pink lines; head at 20, neckline at 24.5-ish which targets 29. The neon green inverted H&S has a head at 20, neckline at 33-ish so target of 46 but let's not get too carried away right now. The current price move is placing a right shoulder for both of the inverted H&S patterns and a fill of the gap at 21.5-ish is in play.

The blue circle shows the current 'island' that price is on, created when price collapsed from 29 to 24 in a heart beat in September. An island reversal would bring price up to 24 from the underside and then leap frog back up to 29-30 in a heart beat creating an island reversal. At any rate, the large gap in this 24-29 zone will be filled in the near future. The dark green lines show the positive divergence in place that bounced price a couple weeks ago.

All in all, this daily chart, as well as the weekly chart posted a few days ago, are very constructive to the upside so the worst is over for RIMM. Projection is sideways to sideways up moving forward with targets of 21.5, 24.5, the 50 MA at 25.7, 27.5, 29.0, 30.0, 33.0 and 33.5. The 29.0-33.0 zone is a doable target by the end of the year. 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.