The bulls are trying to cap another week of gains as we head into the second half of trading and the weekend. We have seen some incredible moves this week in certain stocks with 10%-30% price swings that has meant some unbelievable option returns as the indexes continue to push new highs.
Before we get into today’s numbers, we wanted to do a quick update on Research in Motion (RIMM, $18.07, up $0.33) as shares has hit fresh 52-week peaks this week.
We provided extensive coverage of RIMM in our first Weekly Wrap for 2013 and at the time we said shares were undervalued. The stock was just under $12 and we took a look at their earnings and compared them to others in the industry. We also provided some nice visuals for you as we said shares could make a run to $20:
The short-term graph looks bullish. The price is at support and will likely head to resistance. However it will hit the 1st resistance line at $14 and the 2nd resistance line at $14.60. If the price breaks that too, then the stock could go to the purple resistance line, which is rising at $0.067 cents per day. At this rate it will take 70 days for it to reach $20. The last time the MFI, RSI, Stochastic %K, and W%R were at similar levels, as indicated by the purple lines, the price rose. Two of the four indicators are also closer to oversold territory than overbought territory. The stock did however fall once when the MFI, RSI, Stochastic %K, and W%R were at similar levels, as indicated by the orange line. The MACD could form an upward cross in the near future.
Shares haven’t hit $20, yet, but they have moved up 50% in less than less than 3 weeks. RIMM still has nearly 2 months before we said $20 would trigger but it doesn’t appear it will take that long as the momentum has been powerful. We still have RIMM on our radar for a possible option trade on earnings or the rollout of its new Blackberry 10 but we need to look at both sides of the trade as shares could be setting up for a pullback at some point.
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The levels we are looking for the indexes to close at are Dow 13,850; S&P 1,500; Nasdaq 3,150 and Russell (2000) 900.
As we head to press, the Dow is up 32 points to 13,857 while the S&P 500 is higher by 3 points to 1,497. The Nasdaq is popping 8 points and is at 3,138 while the Russell is advancing 3 points to 903.
We have action to take on a few of our trades as we continue to cash out our remaining trades before a possible pullback down the road. Subscribers, check the Members Area for the updates and we will be back Sunday night with the Weekly Wrap and Monday morning with the Daily. Until then, have a great weekend everyone and make sure you hit us up on our special offer as it will end on Monday. We expect the extra copies to sell out fast.