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RIMM - Massive Support Break



May 18, 2011 – Comments (0) | RELATED TICKERS: BB

I posted the longer term RIMM chart a couple of weeks ago and said that if RIMM broke the six year support trendline that would be a massive support break. The market has spoken, and it looks like bad news for RIMM:

Here's the chart analysis on RIMM

Now triangles can sometimes break one way and then resolve the other, but whichever way you cut it, a trendline break of this magnitude is a very bad sign indeed. The downside target for the triangle is in the 35 area if the target is taken as the bottom of the triangle, and 21 if calculated according to Bulkowski's rules. Bulkowski's rules take the full technical target for this triangle break, which in this case would be an ambitious -6, and adjust it for the 48% probability of a symmetrical triangle reaching target on a downward breakout.

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