Sirius XM Holdings (SIRI) seems to have been grinding above and below the $5.50 pivot area I wrote about previously in this article.
"9/25/2017 – SIRI & Its $5.50 Pivot Area"
In that update, my summary for the stock was as follows:
Use this possible consolidation period to reload on lots of shares that were sold from your core position. If you are trading SIRI, buy below $5.50 and sell above it as a general rule.
While the selling of shares by Berkshire seems to have started a consolidation for SIRI's share price, the trend remains up. But in order for the next significant move to take place, a continued consolidation may occur to try and remove any sellers. If you can't stand sitting through a possible continued consolidation, then consider selling some shares above the $5.50 pivot area until SIRI confirms that its uptrend has resumed.
The continued consolidation mentioned in my previous summary is still taking place for SIRI's share price. With some continued time below the $5.50 pivot area, it is looking more probable of a continued consolidation. Since some additional time has passed since the September update, more specific downside risk areas for a continued consolidation can be calculated and identified. Let's start calculating....
Sirius XM Holdings (SIRI)
This first chart for Sirius XM Holdings is a 10 year monthly candlestick chart. There are 3 Fibonacci Extension Tools placed on the chart to help with upside price calculations and then 2 trendlines.
- The upper trendline is the main supporting trendline since Sirius XM Holdings (SIRI) began its uptrend at the $.05 price level
- The lower trendline is the probable support area for a break below the main supporting trendline
Currently, SIRI's share price sits right on the main supporting trendline, typically a good time to buy shares for an upwards trending stock. However after months and months of continuous positive buying momentum, the MACD Histogram is just starting to shows its first bit of longer-term selling momentum. This is a bearish sign, not a bullish one.
Any breaks below the main supporting trendline have been relatively quick, except for the extended break below that occurred in 2016. SIRI's share price recaptured control of the trendline in February 2017 and now looks to re-test the trendline support…...
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I calculate downside price objectives for Sirius XM Holdings (SIRI) in event of a continued consolidation, which is very likely based on the chart indicators.
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