Home > Swing Trade of the Week > Stock trading:swing trade of the week

Stock trading:swing trade of the week

rimmswing.jpg

Research in Motion (RIMM) made a beautiful breakout of a trading range above $137 about 10 days ago. This is the first bullflag since the breakout. You will notice on the bottom of the chart that the volume picture is “what you want to see” on a pullback to validate the flag, the volume is light.

Because the stock has gone $25 in a short period of time, the pull back may have a little bit more to come in. The trade we are seeking is a long entry with a re test of the previous high ($155) as our first profit target.The lowest risk entry will be when the stock clearly makes a higher low from the previous day and is trading above the first hours trading range. Don’t guess a bottom, let price action tell you when it is OK to enter.

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