A Double-Bottom in SiRF?

Growth stocks are continuing to outperform today, with the NDX +1.0% and the SPX +0.25% as of this post.

One stock that I am involved in that looks to be finding some support is SiRF Tech (SIRF). I have owned this stock on and off for years, with my most recent purchase coming before the company reported earnings, when the stock dipped into the low $20s.

The market did not like the earnings report one bit, when management basically gave soft guidance and said that the big growth from wireless carriers might take a little longer than expected.

I was tempted to sell after it gapped lower the next day, but it soon reached levels where I felt it was just too cheap to sell. Since then, the stock has started to bounce back, and a look at the chart above shows some solid support developing in the form of a double bottom.

I think the stock can climb back to the area from which it broke down, around $22-23. I will look to use such levels as a better exit point for this trade.

long SIRF