The Important Matter of Ragin’ Cajun and RIMM
June 13, 2008 – 8:49 am
When I heard Cajun’ talking about being a RIMM bear, I had to take a look at the RIMM chart. I mean, when Cajun’ gets bearish on the perennial tech favorite, either he is going to be dead-on right, or there is something that is out of alignment in the universe.
Now Cajun’ is not known for being wrong very often, so I believe that something is out of alignment here.
When I see the chart, I see a decent looking breakout that is testing a pivot point and the 50 day average. Granted, it is not perfect, as volume has been declining. But, I would not want to be making a lot of bearish bets on RIMM, just yet.
All that being said, should the 50 day average and the trendline get broken, I think RIMM could see $110.00 very quickly.
And if you switch the chart from linear to log, the trendline gets broken.
June 13th, 2008 at 9:04 amBut not the 50 day.
One has to wonder whether more technical analysts are using linear or log.
June 13th, 2008 at 9:08 amI’m new to this whole thing and I have a natural propensity towards log charts. I don’t know which one gives an edge.
You are right about the 50 MA, although it does seem to be slowing.
June 13th, 2008 at 9:20 amSteve, it seems there are successful analysts using log and successful ones using linear.
When I was first getting started, it seems like the book I was reading had an author that preferred linear, and so that is just what I’ve always used.
However, if I could definitely determine what most people use, there would probably be an edge from that. A lot of TA is just being able to see what others are seeing and trying to guess what they are going to do.
June 13th, 2008 at 9:23 amWood vs Cajun, the match of the century. IBC should charge for this you know.
June 13th, 2008 at 9:35 amOh damn did you see that drop in AAPL!
June 13th, 2008 at 9:36 amWow, the AAPL skinny Steve trade is on in full force!
June 13th, 2008 at 9:43 amComing up next on CNBC . . . .
LIVE from iBC.com the grudge match to end all grudge matches: “The Woodster vs the Ragin’ Cajun”.
But first this message from our sponsor.
June 13th, 2008 at 9:43 amIt is a descending triangle pattern. Support is the 50 day (129.17) and the horizontal line at $127.75 ish. Resistance (descending line) is about $136.
Draw your trendlines and you will see.
June 13th, 2008 at 10:02 amNot at all. I do not choose to go against Cajun, ever.
Just wanted to highlight what I feel like is a huge shift in sentiment.
Anyway, I will challenge The Fly to a grudge match, any day. However, he doesn’t fight fair, so I will likely loose [sic].
June 13th, 2008 at 10:03 amBad ass and humble…a mans man indeed. By the way what would your price target be based on your analysis?
June 13th, 2008 at 10:18 amMarketRaider, on the long side, a price target, for RIMM? I would sell half at 140 and the rest at 150.
June 13th, 2008 at 10:28 amlook at the weekly chart, looks like a loss of momo on the higher high however the 30 wk sma is still rising currently at 112.54…. a pull back to here will give information out on wether or not RIMM will be putting in another leg up.
June 13th, 2008 at 10:52 amThanks wood.
June 13th, 2008 at 10:53 amCajun will make money next week. Don’t forget a put is a lot different then a short. They will start new uptrend after earnings. Forward guidance,new products and agreements. Will kick it up.
June 13th, 2008 at 12:05 pmBPOE, for goodness sakes, this post wasn’t about Cajun’ making or losing money. I don’t wish ill on my partners, ever, except for Fly.
This post was about the fact that I can’t remember when I’ve seen Cajun so bearish, and on names he used to love. That is all. An observation, if you will, with a nice chart.
June 13th, 2008 at 12:59 pmFuck this post.
Don’t mind me, I’m doing drivebys.
June 13th, 2008 at 1:04 pm