Intraday Action of Research In Motion Limited (NASDAQ:RIMM)
On 15 min chart above, it broke resistance @ $37.5 and after printing 3 solid bullish bars, it stalled at the downward sloping 50 SMA. Placing Fibonacci retracement from day's low to swing high of the day, the retracement found support at around 50% Fib level. At 2pm ET, it formed a inside bar just below resistance @ $37.5. A good entry would be long on break of inside bar high, which is also a break of the resistance. By then, the 50SMA slope has also become flattish and converging with the 5EMA & 20EMA. Place stop just below inside bar low and partial profit at previous swing high. As it approaches round number $40 and also 38% fib extension, take final profit or keep a tight stop.
Note: There are 2 reasons, in my opinion, why the earlier break of resistance @$37.5 at around 10.45am ET is not such a good entry for going long:
-It is just about less than $1 away from the downward sloping 50SMA, where the upmove may potentially store. And especially if you're trading options, this is not a very favourable reward to look at.
-If you look at the 5min chart below, before the break of resistance @ $37.5, it made many consecutive bullish bars without any consolidation. It is higher risk setup if you enter here as price could pullback / consolidation anytime.