RIMM Oversold Yields Quick Gains

Blain Reinkensmeyer

Posted on Mon 7th Jan, 2008 11:26:52 AM

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Research in Motion RIMM jumped out at me as it sold off hard from about 10 – 10:30 AM. Using both the MACD and RSI on my intraday charting RIMM presented a good buying opportunity for possibly a scalp if not to go long on.

I took a screenshot of RIMM about 30 seconds after I got my position of $96.77 using a limit order and the stock was over $97. What you want to take note of is the oversold MACD (3rd horizontal box down) and how the blue line is intersecting the red denoting a momentum change,

Click to view, click again to zoom

And here is a screenshot just taken of RIMM now,

click to view, click again to zoom

I am still holding my shares, and with the market rallying here I am going to hold RIMM as a long now atleast for the afternoon and see where it ends up at the day’s end. My stop on this position for the day right now is $95.75 or at intraday lows, which will most likely get bumped up here later on.

Also note, support on a daily view for RIMM was at around $96.