SubscribeMomentum Stock: Sirius Satellite (SIRI)
Sirius Satellite Radio Inc (NASDAQ:SIRI) is gearing up for a strong fourth quarter which is typically when the overall market outperforms. This is the time when satellite stocks rise as they race to sign up new subscribers and sell portable units which seem to be the perfect holiday gift for the person in the family who wants the best radio service and is often on the road.
In line with the Sirius’ historical behavior there are indications that the stock is already on the move once again. In the one-year weekly chart you can see that the stock has struggled to break to the upside against its upper resistance level marked by the long downward sloping line. In addition, the MACD and DMI are finally on the same page in recommending that we initiate a position.
Source: Bigcharts
Our Recommendation: Buy shares of Sirius Satellite which currently trade at $4.13 per share. Set your stop loss at 5% below this price. Jutia will continue to follow this play until a sell signal is given.
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