By Brandon Matthews – Sirius XM Radio (SIRI) has completed the the first two of three phases required to complete a bullish catapult formation using point & figure charting. As explained by Tom Dorsey of Dorsey Wright & Associates in his book Point & Figure Charting: The Essential Application for Forecasting and Tracking Market Prices, a bullish catapult consists first of a triple top buy signal which then pulls back producing a higher bottom. This is followed by a double top and finally a double top buy signal.
In the case of SIRI, a triple top buy signal was given, followed by a pullback to a higher low. This mornings trading has resulted in a subsequent double top being formed at .58. The next step for confirmation is a double top buy signal at .59.
The bullish catapult is considered to be a confidence builder as the subsequent double top buy signal confirms the initial triple top signal and is indicative of supply drying up as demand takes over on improving company fundamentals.
Position: Long SIRI
I just learned something!!! I want some shares @ .565 so someone please sell me as much as you like!!!
Nice article, Brandon. It’s wonderful to see you share your knowledge not just only SIRI specifically, but on learning how to read and buy stocks in general. You are truly an invaluable asset to those that visit here.
brandon… Thankyou ForThe reference…all my support.
I agree with your technical analysis on SIRIUS (SIRI).
Basically I use Momentum. And from this point of view I have the 3 terms, Near, Medium and Long Term Momentum moving up from oversold readings.
I think that Near Term Target is around 0.68 and Medium Term (1 to 3 months) is around 1.50 area.
This picture is difficult to find in any stock listed in the US right now, so is a big positive for (SIRI), and moreover the volume trade in SIRIUS (SIRI) in daily basis is really good.
Besides SIRIUS (SIRI) I also like PETROBRAS ENERGIA PARTICIPACIONES (PZE) from the Energy Sector, which is “the” sector now for adding positions.
so what is the chart saying now?? AH price of $0.71… is this catapult gonna launch??