Research In Motion Ltd.’s program to take the BlackBerry to a whole new level is marching along and all of a sudden so is the RIM share price.
RIM is broke through resistance at the $8.45 level so now that’s support and on good volume too.
RIM’s daily chart show’s how the share price is now nicely above the moving averages.
RIM’s weekly chart shows the longer term support all the way back to 2004
Looking at the monthly chart of RIM, you can see some healthy support going all the way back to 2002. So looking at the charts above is RIM a buy, it looks to me like there’s an opportunity. There’s nothing certain in this world…only probabilities. The company’s beat up share price jumped over ten per cent on Thursday, November 1, 2012 on the news this week that its upcoming BlackBerry 10 phones have entered lab testing with over 50 wireless carriers worldwide. The stock ended Thursday at $8.68 on the TSX in Canada, up 80 cents from the day before that’s the highest level to close the day in over 4 months.
Research In Motion phones, that are supposed to be out early 2013, are important to RIM’s strategy of being #1 again. The all new RIM phone is created to be the high end phone that is supposed to stop BlackBerry users from switching to Apple’s iPhone and smartphones running Google’s Android software.
Testing is being performed to assure wireless carriers for instance BCE’s “Bell Mobility” that the phones are totally compatible with their wireless networks and can work for the wireless customers directly out of the box. It’s not at all surprising that RIM’s phones would enter carrier testing only because of the announced launch date made some time ago.
Delay after delay on RIM’s phone, which were usually announced within grim monetary final results, had shaken investors’ faith within the company’s capability to provide a competitive item. Now that RIM’s new phones have entered testing, the marketplace seems to think that it truly is unlikely it could possibly drop yet another bombshell delay that puts RIM’s future on the line. Richard Russell says that the charts show whether or not investors are putting their money where their mouth is, RIM share price says that investors are giving RIM another chance.
Let’s look at some more charts of the Macro Picture…
The S & P 500 is resting on resting on support as shown in the chart with red arrow.
The next Pivot point is still November 9th so the financial markets might find a bottom at that time…or…the markets might break down on or around the 9th.
Looking at the bigger picture with the 6 day chart you can see how the S & P 500 broke through resistance on the huge channel and now the price is testing that as support.
Looking at the S & P 500 quarterly chart notice how the Stochastic indicator is still going up…but at the same time the price is going to struggle breaking out of the upper channel. There many possibilities for an outcome, one thing is for sure…sometime in the future, whenever that’s going to be, the price is going to tag the bottom line in that huge channel.
Last but not least, let’s look at Canada’s TSX index, the great commodity boom. Sometime ago, I wrote a post about the head and shoulders pattern in the Global DOW Index. Head and Shoulder patterns are bearish most of the time, but sometimes they go against the rules and break out. You can’t see it too well in the chart but there’s a bullish flag in the right shoulder. So this Head and Shoulders pattern might not hold true to it’s nature. One thing that worries me, is the price is having a hard time getting over the 89 day moving average.
They say the markets clime a wall of worry…well…that seems to be the case. There seems to be mixed emotions out there and it shows in the charts, the bulls and the bears are fighting over domination and whichever side has the most money will win.
One thing is for sure… RIM share price breaking short term resistance was a nice change. I don’t think your going to see all time highs for a while…long while…but perhaps the world isn’t so bad after all, according to the charts. Remember November 9th or around that day should provide us with some clues for the financial markets. For full disclosure, I did buy some Research In Motion today, only because of the fact the charts told me to. If the RIM share price tests support at $8.45 or so (and it will) and decides to break through support violently, I will have to sell. I have already accepted that 30 or 40 cent loss as a possibility.
I wish you all a great weekend…
