RIM Back in Black

We highlighted Research in Motion Limited (RIMM) back in early January as a stock that had a tough go of it ince putting in highs of around $150 in 2008, but was setting up for a redemptive move at least back to 52-week highs in 2011.

(See: Wheels in Motion for RIMM)

The Blackberry maker has been beaten down by increased competition from and iPhone and Android-powered phones, which have grabbed a large majority of market share. But there remains a loyal army of Blackberry users who wouldn’t dare give up their BBM. RIMM has also been able to come out with a couple exciting new products, including a viable entrant in the tablet space with the Playbook.

As far as the stock is concerned, the selling pressure to be overdone in 2010, and the reverse head and shoulder bottoming pattern told us the stock was due for a bounce-back through the $64 level. The stock has made more than half of that expected move, and active traders can now look to start sizing down on the position while holding a portion for the full move back the $75-76 area.

(click to enlarge)

Disclosure: No position

About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

Visit: T3Live

Be the first to comment

Leave a Reply

Your email address will not be published.