Research In Motion Limited (NASDAQ: RIMM) — This designer and manufacturer of wireless equipment is best known for its line of BlackBerry smartphones, but lately each of its new product offerings seems to be upstaged by rival Apple Inc. (NASDAQ: AAPL).
The stock appeared to be progressing nicely in an ascending triangle early this year until prices broke down in April. That sell-off turned into a broad decline with a death cross in May.
RIMM managed a reaction rally in July, but it ran into a wall at the 50-moving average and rolled into a new channel down. After a brief rally, RIMM appears to be rolling over again with a new downside target under $38.
Traders should add RIMM to their list of stocks to short. Short selling is a speculative technique, so traders should enter stop-loss orders. Also, check with your broker for margin requirements and the ability to borrow stock. Naked short selling (selling without first borrowing stock) is not legal.
If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.
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