Sirius XM has had a nice run and technical indicators show that the run should be able to continue.  The sticking point for really good price movement from a technical standpoint was the resistance at $2.10.  With Sirius XM closing above that level yesterday, it appears that the stage is set for a new and very strong level of support.  While confirmation with a close above $2.10 toady would be great news, the fact that SIRI has already closed above it is encouraging.

The key support and resistance levels point to a small battleground to form at the next leg up, which is $2.19.  From there look for $2.25 and then $2.35:

  • $1.92 - Moderately Strong Support
  • $2.02 - Moderately Strong Support
  • $2.10 - Very Strong Support
  • $2.15 - Very Weak Resistance
  • $2.19 - Moderately Weak Resistance
  • $2.26 - Mildly Strong Resistance
  • $2.35 - Mildly Weak Resistance

As you can see there is a key battleground at $2.10, which is why, from a technical standpoint on support and resistance levels we want to see the equity close above $2.10 again today on decent volume.  If that happens then the stock can gear up for a run.  If it does not close above $2.10 today then we could see a reset and a continued fight.

From an Exponential Moving Average (EMA) standpoint we want to see a key level at $2.09, which represents the 5 Day EMA.  The key with EMA analysis is seeing the nearer term EMA averages above each successive average.  The action in the past few days has assisted greatly in widening the bullish stance on each average., with EMA's now ranging from $2.09 to $2.01.  This is a bullish trend that is set to continue.

In addition to the technicals looking good, Sirius XM has seen a big positive arrive from ISI Group analyst Vijay Jayant with his report initiating coverage.  Jayant places a $2.80 price target on Sirius XM implying some substantial upside in the cards.  Adding more fuel to an upside run is what is now anticipated to be a very positive earnings call on August 7th.

The action today is important.  Key levels are $2.10 and $2.15 or so with decent volume.  Stay tuned.