Street Chatter: Research In Motion

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A daily feature available on SchaeffersResearch.com is “Street Chatter.” By digging into the stock’s option activity and trading performance, they hope to shed some light on the securities. Here is what Mark Fightmaster has to say about RIM’s future:

Research in Motion Limited is currently enjoying the three-day burst of strength from the telecom sector, fighting its way above the 75 level after gaining more than five points. This three-day push has put RIMM above the 75 level, but this has done nothing more than put the BlackBerry boys straight on a collision course with resistance at the 76 level. In March and April, this level turned away two advances by RIMM and sent it into a slump that it has spent the better part of May trying to break. Looking further back on RIMM’s daily chart, it appears that we are in a near mirror of its late-January to mid-February run. While this run did enjoy some time above the 76 level, it worked its way back down and was forced lower. Before you think that I am a rampaging bear against RIMM, it should be noted that a recent bullish cross of its 20-day trendline suggests that its 10-day trendline may spurt the company on through the 76 level and on to a rally. To add further potential to a RIMM rally, its 10-week moving average is currently attempting a bullish cross of its 20-week trendline.

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