Near-term Low in RIMM
by Mike Paulenoff, www.MPTrader.com
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Today’s point-and-figure low print at 49.40 in Research in Motion (RIMM) satisfies a downside swing objective created by the prior decline from 58.60 to 51.70 and has the right look of a completed correction – or a corrective leg that is carving out a near-term low in the vicinity of 49.40.
That said, although RIMM has found support where the two downlegs are equidistant, the recovery action so far has NOT triggered any meaningful reversal signals – yet. To do so, RIMM must climb and print at 50.60, which will argue that a very near-term low has been established and will project a recovery rally to 51.50/80.
To confirm that a more substantial PF low has been established, RIMM must print 51.80, which will point the price structure towards 53.60-54.00. Conversely, inability of RIMM to hold its intraday recovery gains (near 50.00 or higher), followed by a decline that breaks and sustains below 49.00, will point RIMM towards 48.00-47.60 thereafter.
