It is great to see, but frustrating as well. SiriusXM has flirted with $4.00 for so long now that the two might as well be married. Alas, the day will come. Today the equity closed at $3.99 on lower than average volume.
The fact that we did not close at $4.00 is just as well. We want this to happen on over 50 million shares. If it happens on less than that it lacks strength. We are now just a week away from what should prove to be a great quarterly call. We are about 3 weeks away from the time-frame where the Liberty shares will be assessed their value. It is my belief that we will be trading above $4.00 when that happens.
There is one big cation as we start Q4... The government shutdown is expected to impact auto sales by as much as 10%. That means that Q4 will start off very soft. Auto sales may be as much as 100,000 units off when we see the end of the month numbers. Bear that in mind, as the weaker than typical auto sales will be announced November 4th and 5th, right in the middle of when Liberty wants the SIRI share price to be its highest.
Getting to the technicals, we have support and resistance looking good. Little resistance above, and two strong support levels below. As I have stated, we want to pass $4.00 on good volume. Watch for that. The EMA's are still bullish. Please note that we are a mere 9 cents above creating 3 caution flags. Whether or not we see these develop rests with SiriusXM passing $4.00 with authority. Stay Tuned!
Support and Resistance
Exponential Moving Averages