Research In Motion (RIMM: 70.25 -1.08 -1.51%) seems back in action again and riding on the growth of its Blackberry sales. According to Thomson Reuters, Wall Street is expecting RIM to report fiscal fourth quarter earnings of $1.27 a share on revenue of $4.28 billion. This could probably have been the reason for the strong reversal of RIMM in the past 2 weeks.
Technically, RIMM bounced off from $60.78 and touched $71.67 in the last trading session on considerable high volume. However, we need to see volume pick up much more in the next trading session to break $71.67 as this resistance is tested on two occasions in the past months on volume of 60 and 80 million shares a day respectively. Hence, a strong volume is needed to bring the stock higher to breakout above $71.67. Should the stock successfully breaks out of $71.67, we should see the stock trade between the $72 to $82 zone.
Else, if RIMM did not manage to break out from here, i expect the stock to continue to consolidate to form a potential ascending triangle ( see the blue arrow in the chart ) till the stock breaks out of $72 again. MACD and RSI are all in bullish convergence with current uptrend.
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