PALM Pullback Complete?
Mid-Day Minute for Fri January 22nd 2010
by Mike Paulenoff, www.MPTrader.com
by Mike Paulenoff, www.MPTrader.com
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Palm (Nasdaq: PALM)’s violation of near-term support this morning at 12.40 triggered minor downside follow-through to 12.35 prior to a sharp rally to 12.93. The lack of downside extension beneath 12.40 followed by the sharp rally indicates to me that the stock has completed a significant near-term pullback off of the 1/19 high at 14.17. If my work proves correct, and PALM is not overwhelmed by a total market implosion, then this morning’s low should contain additional weakness. But what if I am wrong and PALM breaks 12.35? Where could it go? The next downside target zone for PALM within its bullish pattern off of the 12/18 low at 9.60 is 12.00 to 11.85.
