Palm has a nice run yesterday.
It forms a new high for the year 2009. The previous time that it breaks through $9 was in Feb, and that rally quickly lose ground on the same day.
Part of the reason then, was Palm has went up too fast; hence you see the big gap between the kumo and the price level.
This time round, the chart tells a different story.
- Tenkan sen cuts Kijun sen on 23 March; a bullish signal
- Chikou Span cuts through the price level and there was no immediate resistant up front.
- The kumo is also forming a support below the price level
- And we ca also see how the Tenkan sen is closely following the candles, providing a good short term support.
The exception is on the Weekly Chart, the kumo has not show an uptrend yet. And this is understandable. Palm Pre has not been launched and there aren’t any sales figure to support it. More importantly, we are just slightly about 3 months since Palm Pre was announced. Hardly a very long timeframe on the Weekly Chart.
This should change a bit as we approach the launch date. But, the risk remains. Palm is launching a ‘luxury’ product in a down economomy. A lot of its success will depends on how much it can get out of the telcos.Â
Hopefully, the Sprint deal will not hold back Palm from quickly working with other partners in Europe and Asia.I can also understand that Palm may not rush the expansion too fast as well. Building a good support team is important. Rapid expansion in terms of coverage will thin out the resources and burn the cash very quickly.
For now, this continue to be one of my bullish holdings.