SiriusXM has all of the EMA's almost fully consolidated. This typically sets up a bold move to one way or the other. The big question now is which direction will that move take. In my opinion, it will be determined by either the SiriusXM board response to the Liberty offer, or Liberty adjusting their offer ahead of a board response. In my opinion the later is not at all likely. I think if SiriusXM recommends the offer that the bullishness will not be very substantial. The bullish move for the equity is for the SiriusXM board to seek a better deal.
We have very strong support at two levels below. The first level is at $3.69 and the second at $3.62. Resistance above is at $3.84. In essence, I think there is more upside in SiriusXM at the moment than downside. That being said, we are pretty well range bound at the moment with a pretty narrow range. It is also my opinion that the next quarterly report will prove to be more modest than many may think. This is a precarious time to be trading the equity.
What we need to watch for is holding the current levels. That is what will set the stage. Watch volume. If a bold move happens it need to be on volume of over 50 million shares.
Support and Resistance
Exponential Moving Averages