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Sirius XM Holdings Inc. (NASDAQ:SIRI): Strong Support At $3.28-32

Boston, MA 10/06/2014 (wallstreetpr) –  Sirius XM Holdings Inc. (NASDAQ:SIRI) (Closed: 3.42, Up: 0.88%) is hurt by the recent ruling by a Californian Federal judge, deciding the company to be liable of copyright infringement in a case lodged by the pop band The Turtles, accusing the company for non-payment of royalties. SIRI plans to appeal against the ruling but the uncertainty and huge future implications may keep the stock price on tenterhooks.

Sirius XM Holdings Inc. (NASDAQ:SIRI) has registered daily highs at the levels of $3.64-65 at least five times in the month of September and the last half of the month saw a deep correction, retracing almost all the gain made in the last two months. But the last correction is clearly seen to be subdivided in 3 parts, with two drops of exactly equal magnitude, punctuated by a sideways consolidation for a week. It suggests the completion of an A-B-C correction and a bounce to $3.52-54 on an immediate term looks very likely. Still, it may be too early to tell if the correction is complete or the entire fall from $3.65 to $3.32 is just the first part of a larger correction.

The bulls may take heart from the fact that the recent low of Sirius XM Holdings Inc. (NASDAQ:SIRI) at $3.32 is not only very close to the last medium term swing low area of $3.28-32 made in last July-August, it is also very close to the lower boundary of the long term channel containing the entire rally from the 2011 bottom of $1.27 till now. If $3.28-32 remains intact, expect resumption of uptrend and a rally to $3.65-$3.72 in the coming weeks. Obviously, the Sirius XM Holdings Inc. (NASDAQ:SIRI) bears need a quick break below $3.28, especially in the light of the recent bullish crossover between 50 day moving average and 200 day moving average.

Aggressive investors may buy the stock at the current levels with a very strict stoploss below $3.28 levels and book partial profit near $3.52 and again near $3.65.

Published by Viraj Shah

Viraj Shah has done M.Com (Finance) and currently pursuing CFP. He is a technical analyst who tracks US markets along with other global markets like India very closely. He is very passionate about stocks and believes that money can always be made in market.

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