RIMM Collapse Imminent Revisited

The Oct 27 post proclaimed that "RIMM Collapse Imminent". Well, it has dropped, but has not collapsed, yet... It closed that day at 63.75, has traded as high as 65.16 and is currently at 57.89. Those who went short the following morning of the 28th, would have been able to enter the short position above 63 and suffered max drawdown of 2.16 intraday (3.4%) with a current profit of 5.11 (8.1%) less commissions. Best yet, another leg down is likely dead ahead with a target below 50. With the 34 day at 62.58, 63 can be used as a stop for zero risk. Risk/reward becomes roughly 5/8 which is not good enough to enter a position here but with the 21 day at 60.83 a 2 point bounce could provide an excellent entry point again. Notice also that Friday's gap down was filled today, yet the close was lower on a day the market was higher. Not a bullish divergence! Look for prices below 50 by year end.