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$RIMM : Rally has failed. Price below kumo

RIMM counter rally has fail. It never make it to break out of the kumo resistance.

With yesterday’s earnings, RIMM has gap down. And on the Ichimoku chart, we have a very strong confirmation of a bearish move. The price is below the kumo now confirming that the bear trend is back.

We can also see that the Tenkan sen and Kijun sen has crossed downwards.

With Apple iPhone 5 expected to launch in October, RIMM will find it hard to catch up in terms of units sold for its BlackBerry. Other challenges includes Apple consolidating its position in tablet sales and most likely with a new tablet in the coming months.

But, what really worries me is Q1 2012 report from RIMM. In the report, RIMM used ‘shipped’ .

I recall Palm faces the same problem a few years back when the webOS was just unveiled. They too used the term ‘shipped’. Does ‘shipped’ equal ‘sales’?

If it does not equate to ‘sales’, then inventories and write-offs are going to come back and haunt them.

Note:

Bearish. Vested with PUTS.