RIMM Dealing with Resistance

Published on Monday, 14 December 2009 10:33 Written by Christian Paolinetti

New York, Dec 14^th (TradersHuddle.com) – Shares of Research In Motion (NASDAQ:RIMM) were fractionally higher in the early morning trading session, as it continues to deal with heavy resistance as it approaches the $65 level.

Research In Motion stock price has been punished by investors in the last few months, and has severely underperformed the overall market. Investors sold-off RIMM after a disappointing earnings report 3 months ago, and the stock price has no recovered since then, dipping below $55 at some point.

RIMM has been trading sideways between a wide range of $55 and $65, as it continues to deal with resistance of the 200 day moving average, which is currently defined at $67.20.

Investors are waiting to see if RIMM is able to deliver a good quarter this Thursday, which should include good numbers out of China where the Blackberry has been doing well.  

RIMM’s price action the last few days was indicative of a probable earnings run, however it hit the wall at the 200 day moving average, which it is now setting the ceiling for the stock.