It was a nice failed test of a swing high, and a nice high speed one at that.
What now? Wait for a retracement before short? See daily chart of RIMM below. Looks to me, immediate target is $52...
Certainly swing lows in larger time frames (65 min and up) are going to be important. I note that on the weekly chart, RIMM failed to make a lower low than the prior bar, so despite the sell off, its still an 'up' bar. However if it clears both weekly bars, then it does seem more likely than not that the early Jan low will be tested.
But one day at a time.
Since the 5 minute ADX is quite high, near 60, its certainly reasonable to assume that some retracement or sideways movement will occure early in the week and we'll just have to wait and see what develops. I would expect that if it does retrace, any rally will stall out while it deals with 63 and that might be a good place to look for a safe entry. (if indeed it rallies)
On ADX, the D- is about to cross D+ on rising ADX. In the past short, ADX was good indicator. Cover when gap of D- to D+ is about maximum with ADX>40
Sorry, I don't use DI+/DI- , just DMI itself. In that chart I posted 65ADX14 is turning up, hey, maybe the retest of major lows will come through. |
