Research In Motion (RIMM) : Intraday Trade

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.


Research In Motion (RIMM) : Rumours and resistance

RIMM is rumoured to reveal its tablet device next week.

The first sign of a ‘short term bullish’ trend came when it starts moving up even though issues with India are not fully resolved.

RIMM looks set to break the resistance from its gap down in August (at around 49.50). After which, resistance is expected at 50.50 from the fairly thick kumo.

I believed RIMM will break 49.50 however, it will be stop out at the kumo resistance and will retrace towards a trading range of between $45 and $50.

For RIMM to move up much higher, it has to show that its investment in the new products will gather lots of sales or enter markets that have not been captured by competitors from AAPL, GOOG and HPQ.


Research In Motion (RIMM) : A sign of weakness

Wall Street Journal just reported that RIMM is shopping for mobile ad network to add to its business core.

If there’s one thing that is clear on this front, RIMM is losing ground for their mobile phone market share.

Acquiring a mobile ad network will at most keep them ‘alive’ in the game and play second fiddle to Apple and Google.

Unless, the acquisition is a game changer, I have difficulty looking at how this translate to a competitive advantage for RIMM.