It was just yesterday morning that I posted for SiriusBuzz Premim members that I felt SiriusXM needed just 3 days of closes above $3.40 to make a run at $3.61. The equity closed at $3.37 yesterday and as of this moment is above $3.40 and making the move on decent volume. In following the technicals of a stock, it is often all about anticipating moves.
"A bullish move is setting up but is frustratingly just out of reach. This has been the case for quite some time. SiriusXM has spent so much time below both the 100 and 200 day EMA’s (Exponential Moving Averages) that it seems like a monstrous task just to get above…Yet…We are on the cusp of that now. We sit just below the 100 day EMA at $3.34 and the 200 day EMA is waiting just above at $3.40. If this equity can break through, there is a very real potential that we ca begin to test the next real resistance at $3.61.. .Real resistance is not until $3.61, but it will take some doing to test that. In my opinion we need 3 or more days above $3.40 to set up that run. The EMA chart is very bullish with just 1 warning flag. We want to see that warning flag fall off today. A close above $3.33 will allow that to happen.." - Spencer Osborne on SiriusBuzz Premium 6-17-2014 8:05 AM
What I am seeing in the action today is that SiriusXM is making a real concerted move to get above and more importantly stay above the 200 day EMA. As long as SiriusXM stays above $3.40, we can see the 100 day EMA move up from $3.34 and potentially cross above the 200 day EMA at $3.40. That would be an added bonus to the already bullish technicals. This has been a long time in formation, but the ingredients are there to see a nice technical move in this stock.
While I oft caution about getting too excited too quickly, I feel that the current situation has been brewing for a while. I am a bit hesitant to call $3.61 just yet, but really feel the potential is there to test those levels in the next few weeks. With strong support at $3.28, and a possible strengthening support level above $3.40, it is my opinion that the equity is much more likely to rise than suffer a setback.
The critical point is closing above $3.40 for three days. It looks like today will be the first. It is kind of nice to be excited about a Friday trading day in this equity for the first time in a long time. Stay Tuned!