Sirius XM Holdings Inc (SIRI)

[rekcusdo]

Love your optimism, but a couple of your facts are incorrect.

First, it didn't touch a low of 2.39, it touched a low of 2.33 on September 18th.

Second, it wasn't at 2.56, it was at 2.64 on August 20th.
That makes the spread from top to bottom 18 cents LARGER, or more than TWICE AS LARGE, as you indicated.

Third, the RSI has NEVER been 84. It's high point was just under 80.

Fourth of all, with your top and low estimates corrected, this means the stock took an 11.7% drop (not 7%) the last time this happened. An 11.7% drop at 2.95 (an estimate before the drop) would bring it to about 2.60, not 2.75. I would call this a SIGNIFICANT drop. Even if it did only drop to 2.75, I'd call that a significant drop too.

Fifth of all, there is a valid arguement that the only reason it didn't drop lower than 2.33 last time was because it bounced off the 50 day average which created a temporary safe point for the stock to recover. The RSI was still above the mid-point, so it could have dropped lower without that 50 day being there. The current 50 day is at 2.58, so it is likely that if anything were to stop an RSI correction, that would be it.

This is definitely a good point to take some profits before a decent pullback.