I have enjoyed the ride for Palm all the way up from the moment Palm Pre was showcase on CES (was it CES??).
I started taking profit the moment the news on its launched was announced (I still owned some shares but has reduced significantly).
Since then, there is quite a fair amount of selling as well.
Tenkan sen has also start turning down as the last 3 days has seen fairly high volume of selling bringing the price down to the $10 range.
There is a chance that the price level will hold above $10 judging fro the kumo support . However, I will not count on that.
If the major indices turns down in the coming weeks, there is a chance that Tenkan sen will cut Kijun sen and we will have a sell signal. We might see PAM being pushed to $9 range before the supports kicks in.
After all, PALM is still burning cash and the ‘new’ revenue won’t kick in until the launch in June. After which, Â one has to wait for the release in Canada (which I suspect will be before Christmas).
So, for those who are sitting on a tidy profit from PALM, consider taking some profit. Or at least, be prepared that more selling may signal a bearish signal (an end to the current ‘hyped’ rally).
