Regular readers of SiriusBuzz have seen the technical moves in Exponential Moving Averages (EMA’s) in action over the past couple of weeks, and hopefully it has been a learning experience. With Sirius XM closing at $1.04 today, the equity has moved into what is called very bullish territory on EMA all measures. Each respective moving average is at or above the preceding average. When this happens it is a bullish indicator.
The Close – $1.04 (above all moving averages)
5 Day MA – $1.02 (close was above)
13 day MA – $1.01 (5 day at or above 13)
20 Day MA – $1.01 (5 day and 13 day at or above 20)
50 Day MA – $1.01 (5, 13, and 20 at or above 50)
From a technical standpoint the action today pretty much follows what was anticipated. A slow walk up with caution. The caution comes into play with the volume. As I have stated before, we want to see moves that happen with authority. Moving up to $1.04 on low volume takes some wind out of the sails for Sirius XM’s latest technical move, but closing above the key resistance of $1.01 is a big plus.
So what we have is the company exhibiting Bullish indications from a EMA’s, convergence, and support and resistance perspectives while remaining a bit bearish on volume. The volume will come, but the street attitude toward the stock has to shift. That shift has just happened, so more conservative investors should watch the volume over the next few trading sessions to get their ultimate confirmation, while those who tolerate a bit more risk have likely already made their play.
As a reminder tomorrow brings the next phase of the Russell Index additions and deletions as well as options expiration.
Position – Long Sirius XM Radio