This daily chart shows how RIMM the maker of the Crackberry has almost filled the gap down of Sept 08 from 89.75 to form a cup with a handle. The problem is the fall of the handle is on increasing volume meaning more selling pressure is probable. However, this could also be due to traders locking in profits prior to the earnings report.
Depending on earnings results an 11 point move is in the making here. Perhaps a way to play the earnings would be out of the money Options:
Calls at $90 strike
Puts at $65 strike
Bottom line is if earnings are good all those traders who took profits will want back in driving prices even higher. If earnngs are bad the door won't be big enough to handle all the traders left looking for the exit.
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