PALM : Possible Bearish Sign

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,  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).


By iam802

Trend trading with Ichimoku