RIMM Chart, Trading Channel Bound – April 2, 2009

I charted the daily price action for Research in Motion Ltd (RIMM) for the past two months ending April 1, 2009.

• RIMM hit resistance today on a trend line of  lower highs that started after it gapped down a month and a half ago
• Support for RIMM could be just a little lower at the longer horizontal line I drew or even above there where it found support yesterday at the trend line of higher lows
• The two trend lines from the first two bullets are coming to a point soon meaning one side is going to break and likely in a decent sized move that is worth trading after a second day confirmation of the break maybe
• RIMM closed below its 10 day moving average yesterday, opened up below it and then rallied above it
• RIMM found resistance at its 50 day moving average which met with the trend line in bullet one – it broke above briefly, but closed just below
• RIMM’s 20 day moving average is moving up and could provide support along with the trend line in bullet two

Opinion – Watch RIMM until you see which way it breaks to from its two longest trend lines collide.  If that break holds for two closes, it could have legs.