when you trade and track many different stocks at once, every now & then a few nice buying opportunities slip through your fingers. regarding the recent RIMM long setup (click on the blue “RIMM” symbol at the bottom of this post to view the recent RIMM posts), on friday i highlighted how the stock had gapped too far above the trigger point (downtrend line), plus into resistance to boot, for an objective long entry on the setup. as mentioned in that previous post, RIMM would likely pullback off that resistance level (T1), which it did and then some, with a strong fade to friday’s big gap higher.
unfortunately, i cleared my mental cache over the weekend and didn’t keep the stock on my radar yesterday. as you can see, RIMM made a perfect, and very brief kiss of that downtrend line providing an uber-objective long-side entry on the re-test, with a stop not too far below the downtrend line. my apologies for not catching that & posting in time as the stock already powered all the way back to hit the T1 level again today for nearly a 14% gain since the re-test yesterday.
maybe some following the stock were able to catch it and if so, congrats. other than a nice educational example for future reference, i point this out as a solid move over T1, now resistance, could provide another objective entry or add-on. volume was well above average on the recent breakout so i will continue to keep RIMM on my radar as a potential long-term trade. however, i still believe that the overall R/R in the market highly favors the short-side right now and as such, i am not adding RIMM as a setup here (or as an active trade if it breaks above T1). of course, those of the bullish persuasion, especially longer-term swing traders or investors, might want to keep an eye on this one in the near-term. updated daily chart and zoomed in chart with notes below:
