SATS – Forming a Rising Wedge

SATS is forming a Rising Wedge pattern. This Rising Wedge pattern in an up trend is a trend reversal pattern.

Technically base on the chart pattern, the upside potential is about 5.4% (from current price of $2.76 to resistance of $2.91). Downside risk is 24% (from current price of $2.76 to $2.10 price target after breaking down from Rising Wedge).

Fundamentally SATS current PE does not show much upside potential. SATS current PE is 16.65 compared to past three years average PE of 17.66.

SATS does not look attractive to me both technically and fundamentally except giving a dividend yield of 4.7%.

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