I had a request, to review this chart for analysis. This deviates from typical stocks that I trade—stocks that have growth in it’s financials. Fundamentally, the stock is not doing too well. With everyone getting their music via itunes, internet radio, youtube, the market share of Satellite radio is dwindling fast. Why pay for satellite radio when there are so many other options out there? I view this stock as a high risk play on the long side.
Technically speaking, the price action is very bullish with all moving average pointing upward. It’s been going up since 2009. This is a great stock for those swing trading. We have reached two critical support levels. The upward trend is holding well (white) and the horizontal support level. I would wait for bullish price patterns on the intraday charts before going long at this point, with a target of $2.40. Should the stock break below $2.00 I would go short.
