Research in Motion
There have been a lot of eyes on Research in Motion (RIMM) lately. Shares of the BlackBerry maker have gotten shellacked in the last 12 months, falling more than 74% while peers rallied on increased mobile device sales. The market didn't react well to yesterday's management shakeup, pushing RIMM another 8.47% lower by the session's close.
So where does this stock go from here?
Not up. Ignore the obvious downtrend in RIMM for a minute and take a look at this stock's price action for the last two months and change. Shares attempted to rally in early December, hitting their head on $18 resistance. Then, last week, shares topped at that same $18 level.The presence of those two swing tops makes RIMM a potential double-top right now, despite the fact that shares are already near the bottom of their downtrend. There's a high probability trade in the move down to support (the dashed line). A breakdown below the dashed line in the chart above makes an even stronger bear case. The 50-day moving average is a good place for a protective stop. Research In Motion, rated C- hold by TheStreet Ratings, shows up on a list of 6 Tech Stocks to Avoid in 2012 and was also featured in " 5 Big Surprise Stock Losers of 2011."
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