Research In Motion Update
Technical outlook As we can see in the chart below, the stock has found a degree of resistance in the $8.30-$8.45 zone. At the time of writing, it is attempting to clear this decisively. These gains are usually shed immediately or a few days later. It is, in our opinion, in the process of a putting in a bottom, although the worst may be priced-in as it is trading significantly off its September 25th lows of $6.25.
The stock is still in a volatile phase and needs to hold above $7.90 on a weekly basis to confirm that the worst is behind it. A weekly close below this level could, however, result in a test of the lows. Conversely, a weekly close above $9.50 would be a very bullish development and indicate that the stock was ready to trade as high as $12.00 before pulling back.
CHART - RIMM
December 2012
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