Research In Motion Limited (NASDAQ:RIMM) has been hammering on the gap window of the daily chart shown below for some time. Will it finally break out? This gap window stretches back to their earnings release which dissapointed Wall Street on September 24th, 2009. The stock gapped lower the next day, going from $83.06 to a close that day of $68.47. The high for the day which gives us our gap window resistance point is at $71.42. This is the master level that must be watched. We have hit it many times in the last couple weeks but never closed above it.
Should Research In Motion close over that area, expect a strong move higher in the coming days to weeks. Gap fill would take it all the way back to $83.00. Getting there in a straight shot is unlikely but in the long term it is extremely likely.
Keep an eye out for this break of gap window. It could be a very solid swing trade.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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