Support and Resistance Example, Research in Motion (RIMM)
The following stock chart of Research in Motion (RIMM) offers a great example of simple support and resistance. Support and Resistance is a basic form of technical analysis used commonly every day to mark potential buy and sell points on a stock chart.
Note: This chart of Research in Motion is a eight month daily stock chart:
1. The blue 1 show us how Research in Motion originally broke through resistance at $143 to claim new highs. The stock though a few days later collapsed back into its base (2), a bearish sign.
2. The blue 2 shows us how Research in Motion collapsed not only back into its based but also below its key $129 support trendline. This heavy volume gap down day was a very bearish sign for the stock overall.
3. The blue 3 shows how RIMM climbed back above $125 which became support but couldn’t hold up as the stock fell back into the $120s and below. This would have been another entry point to short the stock.
4. The blue 4 shows where RIMM has most recently found support around $100 – $103 a share.
—> Next Chart, Potash (POT)
Navigation
- Example 11, Lehman Brothers (LEH)
- Example 10, Fastenal (FAST)
- Example 9, Potash (POT)
- Example 8, Research in Motion (RIMM) <–- Currently Viewing
- Example 7, Canadian Solar (CSIQ)
- Example 6, Frontline (FRO)
- Example 5, Visa (V)
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Another great chart, thanks Blain!
Great visual look, these charts help a lot even for an experienced investor
nice technical chart, helps explain it a bit more
I think 100 is kind of a pschological level as well.
Disclaimer, I have some $105 front month calls that I’ve been picking up on the dips on RIMM to below $100.
You are a believer in the rebound play huh Ray? If $100 holds the stock may definitely see a quick move to $110 – $115 ish.
sold my calls when the underlying was about $107 unfortunately
hard market, took profits, but i think RIMM has further to go
If the market reverses back into the bears hands the only way it will go is down.