Shares of Sirius XM (SIRI) continues to rally and broke out of a recent consolidation during the 3/13 session.SIRI Daily Chart(click to enlarge)Bullish Continuation Breakouts and Pullbacks:- SIRI's stock price shot up to start the week. breaking above a recent resistance around 5.20 to close at 5.44 during the 3/13 session.- Let's take a look at the previous bullish breakouts.- After the breakout, there was always a pullback, but price often found support from the previous consolidation resistance. - Sometimes price would reach back into the broken consolidation range, but never pushed below the range. - So, if price does retreat again, we should anticipate support around 5.20 and expect price NOT to push below 5.05. Bullish Scenario:- Let's say our target is 6.50, which would be 25% higher than 5.25.- Note that so far this year, price has pretty much gained 25% already. - The projection is therefore an anticipation that a repeat of the run SIRI had in the first 3 months of the year. - The timing would likely not be the same, because, we have seen multi-month consolidations in 2016, which could happen again before price continues to 6.50. Reward to Risk:- Let's say we enter long at 5.30 with a stop at 4.95. - This is a risk of 6.6%. - 25% reward vs. 6.6% risk is attractive. - Let's say we have a conservative target of 6.0. - This is still around a 13% potential gain, and around a 2:1 reward to risk ratio with a stop at 4.95.