SIRI Buy Option

SIRI has had a rather stable support line at 3.63 but when it was violated, market tumbled down till 3.30.

This has created an over-sold market with a trend in an upward direction. Past support has now become resistance at 3.63. This is a very important line taking into account past structures: market is giving us signals.

Therefore, taking into account the power of the resistance line and all three strength indicators, one should short SIRIUS XM HLDGS INC . We have entered an over-bought market and hit a strong resistance line, all implying a decrease in the price.