Momentum Case Study: SIRI

| About: Sirius XM (SIRI)

The lastest move of Sirius XM (NASDAQ:SIRI) reeks of a late stage breakout as each base is getting smaller than the previous one. Stocks need to base for 6-8 weeks to shake out the weak hands to go on a proper momentum run. On the regular candlestick chart you can see negative divergence as well, and the failure to clear the previous high is troubling.

When you view the three line break below you can see the bearish wedge very clearly. Click on charts to enlarge:

Disclosure: No positions