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RIMM: Finally Clears Gap Down

August 9, 2008 7:11 PM

Well, it has been 1.5 months since RIMM gapped lower after earnings. Friday, it finally cleared the gap high of $128.98. It backed off that high on Wednesday and exploded to the upside Friday once it cleared. Why? Because there was some short covering, most likely once it cleared.

 It is difficult to know how high it will run now. Techs tend to move higher this time of year as traders want to get a jump on holiday season sentiment. People always hope for a “good holiday season” and tend to bid these stocks up in August. I also noted when it fell, that RIMM has never clearly rejected a high. Therefore, there really is nothing to clear to the upside of significance. I would not be shocked if it eventually makes a new all time high because of that. There are likely to be some sellers near $140 because then the gap will be “filled”.

Update: RIMM was a short under $135 today. I saw it last night, just forgot to post it. I am not a fan of RIMM here anyhow as there are likely to be sellers once the gap fills, as mentioned.

Written by Tom@StockBlade.com · Filed Under Stock Comments 

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