Research in Motion (RIMM) is indeed in motion (November 24, 2012)
BBRY
Dan here at StockMarketMentor.com on Saturday, November 24th. First of all I hope you had a good Thanksgiving and you were safe and remember that we’ve got a lot to be thankful for. No matter what your current situation is my bet is there’s a big, big, big majority of people in the world who would love to have your worst day, so let’s not forget that, alright? Okay, now lets talk about the other side. Good days, look at Research In Motion ( $RIMM Research In Motion Limited (USA). This is a weekly chart, we’ll get to the daily in a second but this is a clean break out from a volatility squeeze, you can see the squeeze right here and unlike just about every stock in the market this has higher than average volume, it’s really, really strong and you’ll see that all of that volume came on Friday. So look, we’ve got the squeeze, we’ve got the breakout, squeeze right there, now we’ve got the breakout and it’s up against the 200-day moving average so let’s look a little more closely. We want to buy this thing, but you look at the daily chart, now the reason this thing got jacked up was there’s an analyst that came out, he set a new price target at $15.00, that’s up here, by the way, at prior resistance, that’s a good thing; he thinks that the Blackberry 10 phones come out in February and the guy really thinks that they’ve got, basically the stock has more upside in it before these phones come out, so he must think the phones are pretty darn good. The stock is starting to run in anticipation of that release, kind of like Apple ( $AAPL Apple Inc ) did in anticipation of it’s new iPhone, so what do we do? I’m already long this stock, I’ve been long for a while, now of course it went up almost 14 percent and I’m thinking, “Well, I sure didn’t have enough of that, did I?” But I wouldn’t buy more here even though the stock could go higher, you never know, it could ramp up even higher still, it’s just not disciplined to buy; if you are going to buy what I would suggest doing is looking at the low of $11.26 if the stock starts pulling back below that level it’s doing what I think it’s going to do and that is either stall here, maybe run a little bit higher but ultimately it’s going to pull back, not necessarily find this low but at least perhaps find the 200-day moving average; so again if you’re buying right now that’s fine as long as you keep a fairly tight stop. If you’re more disciplined I think you just wait on this, certainly if you are already long wait to take a bigger position, that’s what I’m going to do. I don’t know, I may even sell into strength on Monday or if the stock falls below this level, again the $11.26, I may take profits, that’s only fourteen cents below where the stock closed so that’s probably actually what I do when I really think about it; if it falls below here I’m taking profits, but I’m definitely looking to reload. Okay, that’s it for this. Members I’ve got three videos for you. We’re actually covering quite a bit of stocks here, this is to everybody, and volume was really thin, that means that Friday’s move, in my view, is not to be believed. That’s not to say that the markets not going to go higher, but when you’ve got volume so low it really casts a shadow of doubt on how much further the market’s going to go. Members get over to the Weekend Update, and have a good rest of the Thanksgiving weekend. Free Chart