Viewer Mail - SIRI daily chart, 122705

"Great blog, thank you for sharing. I know you mostly daytrade, but I saw the Howard Stern ad on your site. I was wondering what you thought of SIRI going into next year? Does it look like it could go higher, or are you a bear?" - Tom in Oregon

I bought my Sirius Satellite Radio over the weekend, and am excited about 2007. And, I actually own SIRI in my retirement account (from much lower levels), and think there is still upside in the coming months. I don't pay attention to fundamentals, but Sirius has announced great subscriber growth and will no doubt have more positive announcements as we get closer to Howard going live in early January.

From a technical perspective, here is what I see on the daily chart:

1. SIRI is above the retracement zone from the April low to the December high. It has pulled back over the past ten sessions, but the pullback has been very orderly; and, price bounced nicely off of the 38.2% retracement line.
2. SIRI is above the 200DMA. Notice it gapped up today and struggled with the 34DMA. If it can work it's way past that area in the next few days, it could easily re-visit the high from a few weeks ago.

Looking at the big picture, you have good support below from the retracement zone, several daily moving average's, and a solid trendline. I can see SIRI making a run to the Fibonacci extension of the April low to the December high in 2006 - which would put it ~$9.30-9.40. Depending on how prices acts at that level, SIRI could move higher.

I would turn bearish if SIRI closed below $6, which would violate a lot of the support I pointed out above.




PLEASE NOTE - I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL, I JUST POST MY THOUGHTS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES AND INVESTMENTS.