In this weeks technical review I will continue looking at the Exponential Moving Averages (EMA's), volume and key support and resistance levels. The EMA's seem to have been a decent indicator of late, and because they point to short medium and long term, it is a tool that can be used by more than traders.
In the midst of all of this we are also experiencing a snapshot for the Russell next week, and many are in the middle of a potential trade taking advantage of that event. From an EMA perspective Sirius XM is a mixed bag. The stock broke through key support levels, and now the 5, 13, 20, and 50 day averages are converging even closer than they were before.
Volume has been interesting as well. It has been lighter than normal for well over a week. This would seem to be further indication that there is still a large number of people sitting on the sidelines. The down side seems to have carried an advantage, but the equity seems to rally back. We are seeing lower lows as well as lower highs on moderate volume. This brings a mixed message to the technical side of trading.
Support and resistance switching places on a daily basis. At this point key support is $1.02 and key resistance is $1.07. If this past weeks action replays this week, it could set up for some anxious moments on the close next Friday. It is virtually imperative that Sirius XM get above that $1.07 mark going into the shareholders meeting next week.
Below is the new EMA chart (click to view). readers can do their own charts daily to see whether the short term situation is bullish or bearish. Going into Monday Sirius XM is bearish, but the ranges are so close that the picture can literally change in a matter of hours.
SiriusBuzz is also proud to announce another regular series in our coverage of Sirius XM (SIRI). Each Tuesday we will publish the SiriusBuzz Used Car and CPO Scorecard, an original and exclusive series. This series will track the used car market and CPO market inventories and give readers insight into the penetration the used car channel is experiencing. We will chart the data daily and present it each week so readers can see exactly what to expect from this segment that is gaining importance. Log into SiriusBuzz each Saturday for a technical review, Tuesday for the Used Car and CPO Scorecard, and Tuesday nights for SiriusBuzz Radio.
Position - Long Sirius XM Radio