Palm Becomes Way Oversold

With talk and release of the Pre, Palm was the talk of the town earlier this year. The stock tripled from its March low to its September high. October has been a rough month as PALM fell below 12 on Friday. While the chart shows a support break and close below the 200-day moving average, this could be an overshoot as the stock become oversold for the first time this year. Notice that RSI moved below 30 twice last week. Picking a bottom here is like catching a falling knife, but this stock is clearly oversold and ripe for a bounce.