There is not very much in the technicals that looks good for SiriusXM right now. Adding insult to injury, we are getting dangerously close to seeing the 100 Day EMA cross below the 200 day EMA. That is typically not a good thing. At this point those that were thinking that a deal with Liberty was bad have to be scratching their heads. One challenge that SiriusXM will have going forward is that it is tied to Liberty. From now on there will always be caution that some sort of deal could happen at any time.
Right now this equity sits in the $3.30's with a key resistance point just above at $3.42. If you have not guessed this already, it is going to be hard for this equity to break out. The pressure is downward, and the 100 day crossing below the 200 day looks like it could happen in the next week or so unless something compelling happens.
The downside risk that we really need to consider right now is a visit to the $3.20's. While this may not be deserved, it is how the market works. It can and will create a buying opportunity as SiriusXM is slightly oversold. We want to watch the volume and the direction closely. Heavy volume to the downside early in the session could mean that we will at least test the $3.20's. Right now its about playing defense. Simply hope that the equity can hang on and close above $3.42.
Charts are off line today, as I am publishing from a different machine. Charts will return with the next article.