Company Description: XM Satellite Radio Holdings, Inc., a holding company, provides music, entertainment, and information programming for reception by vehicle, home, and portable radios, as well as over the Internet primarily in the United States. The company offers XM NavTraffic, which provides satellite traffic data, and XM WX satellite weather service that offers graphical data weather service to the marine and aviation markets. Its radio services include music genres-commercial free-and live radio entertainment, popular musical formats, sports and entertainment programming, and local traffic and weather programming, as well as XM Radio Online. As of December 31, 2004, it operated approximately 150 channels, including 65 commercial-free music channels; 30 news and talk channels; 31 sports channels; 21 instant traffic and weather channels; 1 emergency alert channel; and premium channels serving 3.2 million subscribers. The company markets its services through various distribution channels, including automotive manufacturers and dealers, national and regional electronics retailers, car audio dealers, and mass retailers and rental car companies. XM Satellite is headquartered in Washington, District Of Columbia.

Our Analysis: The shares of XM Satellite Radio set a new short term closing lowe yesterday on heavier than normal trading volume. This is a bearish trading signal. The shares of 'XMSR' have been in a downward trend since early October, and this is our second bearish recommendation on these shares this month. The shares of 'XMSR' should continue to move lower and test $27.77/share, the point from which they gapped higher on the open of trading on May 12th of this year. If the shares of 'XMSR' close below that level then I expect they will continue to move lower and test $26.53/share, a point of downside support established in late April. I see upside resistance on the shares of 'XMSR' @ $31.16/share, and have set my stops accordingly at $31.57/share.