With shorts covering, and value investors taking position in it,Â RIMM has rallied from the low of around $22 to $32.
Currently, the price level is trading within the kumo; reflecting that it is in a trendless state. Given its steep fall from the high, the bounce from $22 is not strong enough to suggest that RIMM is now in bullish territory.
With earnings in a few days, it is likely to remain within the kumo. My estimate is RIMM needs to break above $32.50 to have a confirmation of its bullish trend. A break below $27.50 will confirm that its rally has come to an end and the bear move will continue, maybe even heading below $20.
I am vested with bias towards the downside. I may close my position before earnings.