Why a RIMM call makes sense....

RIMM got killed today after reporting earnings and cutting their profit margin forecast by 10%. Oh they are only going to make 48% instead of 52%. That just does not correlate to 25% haircut of the stock price in my book. Anyway take a look at a 5 year weekly. Retraced straight back to the 38.2% Fibonacci line which is slightly above the 200 week EMA. Interesting you say......

(To enlarge charts to full screen just a mouse click away and hit your back button to return)



The daily reinforces again the wonder and amazement of Fibonacci levels. Drawing fib retracement from June highs to today's low brings out the lowest low prior to the gap down or roughly $88 per share and coincidently the 23.6% retracement line. It may take a Federal bailout or a few days, but the likelyhood of $88 is enough for me.