Here’s my intraday trade for RIMM based on the 5minute chart.
To recap :
– RIMM is still below the kumo; trend bearish
– It has rallied off the low and with rumours of a new device and possible resolution of issues with India, it is pushing higher.
– Resistance is expected at the gap from the Daily Chart at around 49.50
With the above in mind, I was looking for a pullback trade on the Intraday and this is done with the 5 minute chart
From the chart above, we can see the following :
1. Support level defined at Pt 1 is break with RIMM pulling back from the day’s high of around $49+ (good entry with stop-loss)
2. As it retraces, we can see Pt 2, Chikou Span is cutting through the price level (or price candle)
3. This is supplemented with the fact that at Pt 3, the price is breaking down from the thin kumo support. If it breaks, there is no need to take profit and I will let it ride a bit further.