Research in Motion (NASDAQ: RIMM), the famed maker of Blackberry devices on Monday August 15 received a nice boost from the market gods and rallied 10.40% for the day. The culprit? Google! On August 15th Google (NASDAQ:GOOG) announced its acquisition of Motorola Mobility (NYSE: MMI), which they paid a 63% premium for. Why? It’s all about the patents that Motorola Mobility (NYSE: MMI) has hoarded over the years. So this gets us to Research in Motion (NASDAQ: RIMM), which has a ton of patents itself. Put two and two together and people are starting to speculate about a possible acquisition by someone somewhere of Research in Motion (NASDAQ: RIMM). And if not, at least the company has lots of juicy patents that are worth ‘a lot.’
I have touched on Research in Motion (NASDAQ: RIMM) before and the weekly chart’s hideousness speaks for itself.
The daily chart however is where the looking gets more interesting. My buy target is on a daily close above $30. That’s where the down-gap from June 17 comes into play. On that date the stock opened about 20% lower on the back of the company’s earnings announcement. The gray box indicates the gap area that, as gaps usually do, could get filled once the stock starts moving into that shaded area. The gap fills at around the $35 level, which would also be a final price target for this trade. Stops can be set near $28. More aggressive investors may want to enter this trade around $27.50 and have the bottom of the gap at $30 as the first price target.