I will see if I understand your question here. First, have a look at a simple 5-year chart:
Attachment 131632
As you can see, the historic high of this company occurs in 2008 followed by a long and methodical decline. We are rallying today, within that downtrend formation and so, we have some work to do before we can celebrate a major move in RIMM stock. We have to breakout of this 5-year pennant formation on great volume and hold our prices on a retest later on. And so, the $ 15.00 share area is huge resistance and the reason why the short interest is so high. Shorts have been right since 2008 and we are trying to end their control of the stock. You will see the short interest going up as long as the stock fails to breakout here. Can we do it, of course we can but it will take 200 million shares and a massive short squeeze to get the job done.
Now, within that bearish 5-year chart is this short-term rally:
Attachment 131633
We are addressing that downtrend line that started way back in 2008 and we have some distance to go here. The shorts control the stock and to date, they are winning this battle. But RIMM is about to rewrite the market`s attitude about its stock and will try to break the hold on the shares. Prem Watsa and his boys are aware of the trading in the stock and I`m sure they have developed a battle plan to take this much higher. Note that since we closed above $ 14.00 we haven`t tested the support area much at $ 14.20 a share, we have formed a pennant triangle here that is a cooling off point from which to start another rally. This is what I want to see happen, pop up, consolidate our gains and do it again and stay well within the up channel. In order to move up in a bear trending stock, we need to get rid of the weak hands, those who bought and have had to endure losses for many months. Most people are happy to get out of a bad investment and we have to buy them out and this times time. Is it a good buy here, NO!! You would buy a stock when it is on the uptrend line and sell it when it hits the top of the channel. We are smack dab in the middle which is poor timing. Now if you know that news is around the corner, you might buy some stock knowing that news trumps everything else here. Let`s see if this pennant formation holds, I think it will, and ideally we would close slightly positive here today (definitely not make new lows) and set ourselves up for a pop above $ 15.00 a share. I like how it is trading so far, we need to clear $ 15.00 but that can be towards the end of next week, it doesn`t matter as the real fireworks begin the week of the launch!! GL