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Back in August, RIMM was in the mid-$20’s after an vicious slide from the $70’s just a few months back. I wrote that the stock (along with GNK, which has been a terrific performer since) was so bad that it might be good. After that, RIMM sprinted up to the mid-$30’s.
However, yet another dud of an earnings report sent RIMM shares much lower, actually marginally breaching the prior summer lows in the $20/$21 zone, before finding support. The issue now is whether Research in Motion is forming a major double bottom. I see there is news today that Carl Icahn may be taking a huge stake in the company. Rumors aside, there are similarities between RIMM‘s attempted double bottom and the S&P 500’s.
On a weekly timeframe, Research in Motion remains very oversold and should hold here. The “easy” part about this setup is that you know where your stop-loss can go.
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I clicked on the link cringing at the potential of the intro graphic.
lol
Strange, because I clicked hoping to see another fine choice in visual from Chess.