While showing strength is good, it is not driving the equity. Essentially, what we are seeing is strength in the current range with small busts to new 52 week highs. The biggest problem is that we are not seeing big volume to the upside. The other issue is that the company is being sued left and right over warranties.
Some thought that the Turtles suit had not teeth. Then Sound exchange sued. Now we have the record labels joining the fight. When 1 attorney thinks he has a suit (the Turtles suit) is is one thing. It is even possible that a second attorney (the Sound Exchange suit) would see enough of a chance for success to file a suit. When the labels jump on board with a third suit, you need to take notice. It gets to be more and more unlikely that this many different attorneys would all arrive at an opinion that there is merit for a suit if that was not the case.
SiriusXM did put up a caution flag. This is not a big worry, because the strong support sits down at $3.72, but investors need to keep their eyes on this. The trending can be an enemy when uncertainty about a subject starts to rear its head. Watch the support level at $3.73 and look for simple consolidation as the market digests these lawsuits.
Support and Resistance
Exponential Moving Averages