Thursday, September 16, 2010

Shoulda, Coulda: RIMM

The last RIMM post I had here was late July, for it to break down from $55. Well that happened.

I've been watching RIMM since for several weeks, and I've kept saying to myself, "positive divergence, positive divergence..." in MACD. Despite the analysis of the stock that I read on fundamentals, which are downright dismal, I saw this divergence and I thought "You know what, the stock may pop any time, surprising everyone." And the first target would be $50, I thought to myself just yesterday. Yesterday's close was $45.52.

Well well. It may happen, after all. Research In Motion reported its earnings AH today and it beat estimates. The share price went up 4.54% in after hour trading, to $48.60.

Here's the divergence that I saw and didn't act on it. Oh well. C'est la vie. (Oh BTW, anyone who acted on SIRI, congrats! It took a while but now it seems to be on its way further up.)

If the general market stays up, it may not be too late to buy in. Watch 60-period slow stochastics to see if it crosses above 20 (buy signal). Do your own DD, this post is nothing but entertainment.

(And why don't I listen to my own advice? The whole point of starting this blog was to get it out there so that I would actually see what I think and follow my own advice once in a while...)

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