My medium-term pattern work from the June and September highs into last week’s low, as well as my momentum work, are telling me that Research in Motion (RIMM) has completed a major correction and has turned to the upside to begin a potent “repair” rally period. Let’s notice that the initial rally from 54.30 to 60.57 came to a screeching halt right beneath the September-November down trendline. After the current pullback runs its course, into the 58.00-57.00 area, the next upleg should hurdle the trendline on the way to 65.00-67.00 thereafter.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.