Sirius XM Holdings Inc. (NASDAQ:SIRI) found buyers at the $3.80 levels once again last week and bounced back sharply to $3.97 before ending the week at $3.94. The stock is actually stuck in the range of $3.80-$4.00 for the last 2 months and the time of a breakout from the range looks very close.
Sirius XM Holdings Inc. (NASDAQ:SIRI) has begun broadcasting Premier Boxing Championship fights to national satellite radio listeners since April 11 and that is a major step towards bringing that sport back to the national radio airwaves. The market will see if that can add more value to the company.
The last quarterly result reported had shown the earnings per share coming at $0.03, on par with the expectation. It was an increase of $0.02 compared to the same quarter last year. The revenue of the company came at $1.09 billion.
Technically, the stock is in a long term bull market for the last 5 years. It is evident from the series of higher highs and higher lows. The fall from the 2013 top must be taken as a healthy intermediate correction only, which is almost fully recovered by now.
A very similar correction was seen in 2011, followed by a rally that retraced the entire drop but corrected once again before resuming the long term uptrend. The current phase looks very similar till now and if the previous example is followed once again, then we can expect another correction from the $4.20 levels. In that case, the immediate support area around $3.60 levels would play a very important role for the traders. If that support remains intact, then the bulls would take the stock towards $5 levels very fast. The only concern for the bulls in the current scenario would be the dried up volume, which suggests more short covering till now instead of fresh buying.