{"id":491,"date":"2009-04-06T17:57:30","date_gmt":"2009-04-06T22:57:30","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=491"},"modified":"2009-04-06T17:57:30","modified_gmt":"2009-04-06T22:57:30","slug":"a-great-set-up-rimm","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/a-great-set-up-rimm","title":{"rendered":"A Great Set Up- RIMM"},"content":{"rendered":"<p>SMB caught a nice trade in RIMM on the Open. \u00a0We used an intraday support level from Friday to start a core long in RIMM today. \u00a0Let&#8217;s discuss.<\/p>\n<p>RIMM finished up over twenty percent on Friday. \u00a0RIMM had trouble trading above 60 into the Close but still finished impressively. \u00a0During the midday 58.50 was a huge level on Friday. \u00a0This level, 58.50, was violated only temporarily when the market was weak on Friday. \u00a0This move through 58.50 looked more like a shakeout. \u00a0And RIMM did not trade below 58.31 on Friday during this temporary move below 58.50. Then RIMM reheld the 58.50 level and traded towards 60, where it failed.<\/p>\n<p>So we learned some important trading levels last Friday for RIMM. \u00a060 was resistance. \u00a058.50 and 58.31 were support. \u00a0The market opened negatively and RIMM opened lower. \u00a0RIMM opened below the 58.50 level, traded below 58.31, so I got short. \u00a0I noticed too much buying at 58.25 and 58.20. \u00a0If RIMM was weak it would have traded down quickly below the 58.31 level. \u00a0It did not. \u00a0There was buying at 25c and 20c. \u00a0 There especially was some buying at 58.20. \u00a0There was significant volume at 58.20. \u00a0The 58.20 level held.<\/p>\n<p>For new traders this can be a tricky trade. \u00a0RIMM is below 58.31, the support level. \u00a0 Almost always we do not get long below support levels. \u00a0But there was significant buying just below the support level. \u00a0I flipped my position and started a core long position. \u00a0RIMM opened lower mostly because of the market. \u00a0RIMM was not trading weakly below the support level. \u00a0Significant volume was done at 58.20 and that level held. This is what an intraday bottom can look like.<\/p>\n<p>This is a great example of why <a href=\"http:\/\/www.smbtraining.com\">learning how to trade<\/a> is most important when you begin. Learning how to read the order flow teaches us that the move below the support level, 58.31, did not signal a true breakdown. \u00a0There was too much buying below the support level. \u00a0There was a held bid just below the support level. \u00a0The short time period RIMM traded below the support level gave us pause to trust a break. So we got long.\u00a0Now remember RIMM was exceptionally strong on Friday. \u00a0Stocks after days like Friday tend to trade much higher. \u00a0You ought to expect another few strong days from RIMM after its exceptionally strong Friday. And this temporary dip below a support level on the Open, with a held level, with significant volume, is an opportunity to start a long position.<\/p>\n<p>Also, RIMM is a stock that we can all understand. \u00a0The Blackberry is an awesome product that many of us use. \u00a0This is an easy story to understand as an investor. \u00a0RIMM is one of the top five technology companies. Top companies, with easy stories to understand, get bought by many investors. \u00a0 With good news, hedge funds, mutual funds, and the big banks want to own this stock. \u00a0And I did. \u00a0And others on our desk did as well.<\/p>\n<p>60 was our next resistance level so I lightened up in front of 60. \u00a060 did not offer much resistance today so I reestablished a core long position. \u00a0I lightened up near 62.75 into the close as this offered resistance. \u00a0I reestablished above 62.75. \u00a0I held my core into the Close where I exited at 64. \u00a064.25 is resistance as I write. \u00a0I will watch for a hold above this level tomorrow. \u00a0RIMM has shown us no evidence as of yet that the top is near.<\/p>\n<p>Best of luck with your trading!<\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/04\/rimm-2-day-04-06-09a.bmp\" title=\"RIMM 2-day 04-06-09a\"><img decoding=\"async\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/04\/rimm-2-day-04-06-09a.bmp\" alt=\"RIMM 2-day 04-06-09a\" \/><\/a><\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/04\/rimm-open-04-06-09.bmp\" title=\"RIMM Open 04-06-09\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/04\/rimm-open-04-06-09.bmp\" alt=\"RIMM Open 04-06-09\" width=\"455\" height=\"329\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SMB caught a nice trade in RIMM on the Open. \u00a0We used an intraday support level from Friday to start a core long in RIMM today. \u00a0Let&#8217;s discuss. RIMM finished up over twenty percent on Friday. \u00a0RIMM had trouble trading above 60 into the Close but still finished impressively. \u00a0During the midday 58.50 was a huge level on Friday. \u00a0This &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/a-great-set-up-rimm\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,10],"tags":[4676,30,18],"class_list":["post-491","post","type-post","status-publish","format-standard","hentry","category-general-comments-2","category-mike-bellafiore-bellas-blogs","tag-day-trading","tag-prop-trading","tag-smb-capital","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Great Set Up- RIMM | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/a-great-set-up-rimm\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Great Set Up- RIMM | SMB Training\" \/>\n<meta property=\"og:description\" content=\"SMB caught a nice trade in RIMM on the Open. \u00a0We used an intraday support level from Friday to start a core long in RIMM today. \u00a0Let&#8217;s discuss. RIMM finished up over twenty percent on Friday. \u00a0RIMM had trouble trading above 60 into the Close but still finished impressively. \u00a0During the midday 58.50 was a huge level on Friday. \u00a0This ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/a-great-set-up-rimm\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2009-04-06T22:57:30+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/04\/rimm-2-day-04-06-09a.bmp\" \/>\n<meta name=\"author\" content=\"Bella\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bella\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" 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