RIMM currently sits on top of a prior gap support level ($58) created back in April. Price tested that gap on Nov. 2nd and reversed strongly. It then tested it again on the 20th of Nov. and couldn't get much of a rally behind it, leading to Friday's gap down.Should RIMM slip into this gap range I'd be looking for potential support at around $56.5 (78.6% retracement and 61.8% Fib extension), followed by the $54 area (previous lows & 100% Fib extension).Should we bounce from here, look for possible resistance come into play at an overhead trendline ($59-$60).
A bounce, we look for short opportunities either at the PDH's, the 50EMA, or overhead trendlines (depending on how strong the bounce is).
If price can't get beyond the 20EMA and PDH's we look to play a base break of the $58 level.
If we gap down from here we look to sell pullbacks (either in a trend scenario, or a retest of the base).
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.