By Chief Market Strategist Gareth Soloway on March 1st, 2010 1:53pm Eastern Time
Research In Motion Limited (NASDAQ:RIMM) is stuck still trying to break through the gap windown created by a poor earnings report back on September 24th, 2009. This gap window was formed when after the markets closed, Research In Motion released a less than stellar earnings report according to Wall Street. The stock had closed that day at $83.06.
The next day the volume was massive and the price dropped sharply. This created the current gap window that Research In Motion is still trying to break through. The high for the day was $71.42. Since then, the stock price of Research In Motion has hit that level many times. Even intra day, it has crossed that level but by the time the markets closed, it was back below.
The latest attempt was made today. In this mornings session, Research In Motion went as high as $71.79, above the gap window resistance point. However, since then, the stock has fallen back down below $71.00. Could this be another failed attempt? Very possible.
Bottom line is this. If Research In Motion is able to close above the $71.42 level, it has a high probability of continuing higher near term. However, should it fail to move above this level in the next few days, the stock may be destined for a drop back into the mid $60.00 level. Time is of the essence here. Technically it does need to break soon or a pullback lower is likely. Watch and wait. Enjoy
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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