Charting Outlooks for ENCO, TMR, and SIRI

Stocks are rallying today to close out the week on a bullish note, which is in tune with the bulk of our most compelling charts. Among the ones most worth mentioning are Sirius XM Radio Inc. (NASDAQ:SIRI), Meridian Resource Corp. (NYSE:TMR), and Encorium Group Inc. (NASDAQ:ENCO). Here's a detailed look.

When I last looked at Sirius XM Radio Inc. (NASDAQ:SIRI) on November 4th, I took a bullish (and unpopular) stance. I'm glad I stuck to that call, resisting the temptation after it sank a couple days later... we're back in the black since then.

I'll just reiterate the point I was making a little over a week ago - Sirius XM Radio just pushed off a very important intermediate-term support line. If the pattern hold true like I think it will, SIRI could make its way back up to the $1.00 sooner than later. That's where the upper edge of the bullish 'zone' will be in several days.

The one thing I'm not crazy about yet is volume; there's not enough of it right now to carry Sirius XM Radio to meaningfully-higher levels. All the prior pushes off that support line started out with minimal volume though. So, SIRI remains one of my preferred speculative long ideas.


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The bearish take on Meridian Resource Corp. (NYSE:TMR) is actually a pretty simple one... the resistance lines are winning, while the support lines are losing.

The weekly chart below tells the story well enough. Meridian Resource fell under a key support line three weeks ago, while shares continue to find a ceiling as a falling resistance line. The fact that the high from TMR in August was lower than the peak from May is a symptom of the overarching problem at hand. Either way, the bears are in charge.

There's a bastion of hope for horizontal support at $0.26, where Meridian Resource shares rebounded in June. Given what we've seen so far though, the odds don't favor the bulls. If $0.26 breaks down, TMR is in real trouble.


For some reason, Encorium Group Inc. (NASDAQ:ENCO) keeps coming back to me. The last time I looked at it was in late October, and though I was bullish then, it's actually priced lower now. Yet, there's something about this chart.

I think more than anything it's the way Encorium Group has made a slow-moving, bowl-shaped reversal over the last several weeks, though admittedly we're only seeing evidence of an ascension (via a MACD crossover) today. On the flipside, there's a lot to be said for the fact that ENCO did not lose ground in October the way the market did - relative strength counts for something.

I'll also point out that Encorium Group shares have finally moved above a resistance line that's developed over the last six weeks. It's a minor win, but at least tangible. More importantly, I think it's a precursor of a big rebound/rally that just needs the right catalyst/

If you'd like to know of any changes in our opinion of TMR, ENCO, and SIRI (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.