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Research In Motion, Ltd (RIMM): Price dump on Playbook launch. Weak demand

 

RIMM’s Ichimoku chart is a good example of a poor product launch reflected on the technical chart.

Monday (Apr 18) see RIMM price starting to reverse and staying above the Tenkan sen as the Playbook is due to be launch on Apr 19.

On Apr 19, we can clearly see that RIMM price fails to go beyond Monday’s high and reverse heading down towards $53.

If the demand is high for Playbook, I would think the price will have went on to go higher; maybe hitting $56

On top of that, another possible cause for RIMM poor price performance could be due to the CEO’s ‘unfair’ comments on the BBC when he was questioned about the ban of RIMM’s services in Middle East.

Both incidents highlight the challenges that RIMM is facing.

1. Creating the new products that the market wants and shake off the laggard image (behind Apple).

2. Resolving the issues in Middle East and grow their revenue in their traditional BlackBerry services.

Unfortunately, at this point, there is no silver lining for RIMM.