Sirius XM is in a bear trend, but that may end this week for reasons that go beyond the technicals. As most investors know, Sirius XM Radio qualified to be included on the Russell Indexes. That event will cause shares to be bought up in anticipation of the spike that will happen on June 25th. The next key date for Sirius XM is June 11th.
Technically speaking there are numerous bearish indicators for Sirius XM at this point. Over the past few weeks we have been tracking EMA's and reported each week that the shorter term has been bearish. What we have also been reporting is that the moving averages are all converging, and that when this happens a break-out can happen.
As of this writing the moving averages are all within two pennies of each other, and Sirius XM sits only a couple of pennies below. This sets up a bearish short term and medium term outlook, but the consolidation of these averages means that a reversal can happen in short order. I merely takes the closing price to get above the 5 day average, and each average to pass the next. With the averages so close, investors need to watch closely, especially this week!
Sirius XM continues to trade in a narrow range. The equity sits just below very strong resistance at $1.01, which also happens to be the key level on moving averages. If Sirius XM can pass through $1.01 they will now have a strong support above key moving average levels as well. With the Russell news building, things could become very bullish very quickly.