Sirius Satellite Radio Inc (SIRI): Chart Analysis

SIRI has been trading in a narrow range of $3.50 to $4.00 for the past 6months. Recently, it moved higher on double the average volume. I noticed a couple of interesting things that I thought I could bring to your attention.

1. MACD Divergence: While SIRI formed a lower low in late December trading, I noticed a divergence in MACD as shown in the chart.

2. OBV: The 'On Balance Volume' has been on the upswing since Sept 06.

Given these indications, there is a good possibility of SIRI moving hiher from here. Resistance can be experienced in $4.75 and $5.50.