Tonto Trade – RIMM (Research in Motion)

Another intraday PP play.
I saw two entries with RIMM (marked with arrows in the chart). I missed the first one but I was there for the second one. RIMM gapped up, but it immediately positioned itself under the $97 intraday pivot point. It tested it a few times and once it met the intersection of the declining 5EMA and this pivot point, it broke south. I am not sure if the long tail in the following candle took place after the entry because I missed that action. RIMM broke below the 38% fib retracement drawn from the previous day low to the 15 min ORH. It tested the 50% fib retracement and starting forming an ascending triangle (higher lows) with the base of the triangle being the 38% fib retracement. I was expecting a move up, but the whole market was weak and RIMM fell dramatically. My goal (very ambitious) was the 76% fib line, but Friday’s session was getting to the end and I feared a last minute rally, so I exited around $92.50. RIMM reached may original target on the last 15minutes of the session.