RIMM $33 or $53?

[ThePropTrader]

Currently sitting near 52 week lows, RIMM pps is in a position for a potential continuation sell off in the next few days. At the same time if the price holds above $42.53 which was the 52 week low RIMM might easily bounce to $53 in a very short time. Even though technical indicators are indicating that a possible bounce is more likely to happen, the current chart pattern tells a different story. Take a look at the animated chart demonstrating how the completed chart pattern might look like if the price was at $33 and $53.

 

[wackypete2]

I'll throw in my 2 cents...

Trend is down and fundamentals aren't exactly pointing to any great price pop in the future.

Continuing downward to test the 2009 lows would be my guess. The 42.53 area at best looks to be a very weak support line. It was a good spot for the shorts to cover (52 week lows) and when that's over price will continue to fall. Also, if we label the high from mid march 2010 "a", the low in september 2010 "b", the high mid February 2011 "c", then "d" is completed at just about 33 in both time and price distance.

We'll find out soon enough


Peter