Research In Motion (RIMM) has formed a triple top formation. This is similar to the recent double top in GOOG, except RIMM has validated the formation while GOOG is still in the "watch and wait" stages. Triple Tops indicated bearish future price action in a stock. In this case, we have three tops at approximately 140. RIMM price action recently took it through the upsloping middle valley support line.  Tis previous support line should now act as resistance.

The measured move in RIMM's case suggests that shares should drop to approximately 112. That translates to a 12% downside move in RIMM's share price. Not a bad set up.

Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.