RIMM is one of those stocks in which it falls in to the "Beaten up stocks looks better" rather than the "High flyers are looking worse" in a strange stock picker's market that I suspect has a lot to do with something the market hasn't been concerned about in many years, value. Look how AAPL and RIMM are trading almost exactly the opposite, even today.
My feelings on RIMM have been longer term positive as it builds a base and shorter term pullback before it can break out, I even wrote that yesterday and here we are today.
Lets see how it's progressing...
On a 5 day chart the price ROC has dropped off dramatically, changes in character precede changes in trend, volume has also been looking better recently.
On a daily chart, here's the base area I mentioned, it just looks too extended to me for a break out from yesterday' close, today a nearly 5% pullback.
The 60 min 3C trend with confirmation on the trend down and a leading positive divergence at the flat base-like area.
A close up of the 15 min chart shows exactly the negative divergence that suggested RIMM pullback, even though price alone made that look like a high probability.
We like to buy pullbacks as price comes to us, we get a better price with less risk, but it has to look ready, it has to show accumulation of the pullback.
The 2 min chart shows the very early 3C timeframes are starting to show some progress in the pullback, STARTING.
At 3 min it is still in line and 5 min as well as 15 min is still negative, the 5 and 15 min charts need to see positive 3C divergence migration and then we'll know it's high probability that smart money is accumulating in that area, that's where we want to look at buying.
Definitely a long worth keeping an eye on though.
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