It seems like a lot of work, but SiriusXM is inching into bullishness. The equity closed right at the critical resistance point of $3.60 on volume that was higher than the previous session, yet lower than average. Getting beyond $3.60 is a very bullish sign, but crawling past it tempers some of the potential enthusiasm.
We saw the equity knock on the door today. There was not enough power in the move to break through, yet there are a few things happening that can give the bulls something to grasp on to. We removed another warning flag today, and we saw the EMA's tighten up to almost where things are on top of each other. When the EMA's tighten up, the direction of the ensuing move is typically with the trend. This would indicate that a move would be up.
Before we get too excited, we have to remember that there is a ceiling of sorts on SiriusXM at the moment because of the Liberty situation. I suspect that we will hear something in the very near future on that front. Essentially, we are waiting on the news. Until then, we seem to have established a bottom, and can look forward to better days ahead.
Support and Resistance
Exponential Moving Averages