Technically Speaking Sirius XM Is In A Bullish Trend
Sirius XM Radio closed above $0.60 yesterday on good volume. The equity, which fell to as low as a nickel only a few months ago, seems to have found some legs in recent weeks, and during that time has shifted to bullish indicators across the board.
Technical analysis has many factors. Those that follow these indicators have typically been stymied by mixed signals, some bullish while others are bearish. For the first time in a long time, technical signals have aligned, giving perhaps the strongest indication for an upswing that can maintain itself going forward.
The Expotential Moving Average (EMA) is a moving average analysis that gives more weight to more recent prices. Sirius XM currently enjoys very bullish indicators on EMA’s for 5 day, 20 day, as well as the 50 day. Sirius XM is also bullish on Fibs, stochastics, and volume. In addition, Sirius XM closed above the $.057 resistance, which is now support.
One potential issue is that prior to this week, the resistance and support levels between $.0.50 and $0.60 have not been real strong. In my opinion, more volume above $0.60 will add strength to that support level, and it could give legs to a continued upward trend.
The buying trend is not huge, but there does seem to be a consistent “easy” pressure on the buy side of the trades. What is good is Sirius XM is not trading on the emotions of news or lack of news. This upward trend simply seems to be natural. This natural aspect of the latest moves is a positive in my opinion in that the equity is not being influenced by emotions, or a herd mentality.
Of course, the key here is maintaining the current trend. Should SIRI pass through $0.70 per share, investors could begin to gain confidence that the reverse split issue is becoming less of a drag on the company. If Sirius XM passes $1.00, it should begin to see more and stronger institutional play (although some institutions still will not buy). Institutions have been dabbling in the equity, but there are still many that have only $5 to $10 million invested, which by institution measures is not very substantial.
On a day when it appears that the markets are bullish as well, we could well see Sirius XM’s price continue to appreciate or build support at levels above $0.60.
Position – Long Sirius XM Radio
Thanks Tyler
This really is a more important and relevant artilcle at this moment in time especially for us investorrs in SXM.
LLOYD…..
I appreciate your comments, but all news, good, bad, or ugly needs to be considered.
I wanted to see pre-market today before jumping to a conclusion yesterday.
I have no problem with the good, bad, or ugly news. I like to hear it all. As a matter of fact i appreciate your take on things.
Its just that sometimes one makes a choice of what to emphasize that might be second quessed.
Yay !!
And I thought we were headed back to $0.30 !!
http://www.globalequityreport......com/siri
Don’t worry. The pig that is SIRI will be there soon enough.
Hi -
I’ve been trading for some 10+ years, and was originally introduced to SIRI as a stock choice when it was trading over $4/share. Back then I was really fundamentally oriented and it took 15 seconds looking at one fundamental screen to decide not to touch it. Currently, I trade 90-100% on technical analysis, depending on the stock. I took another look at SIRI when it was trading in the 30 cent range after a good friend brought it up again. I bought it then, and using some heavy TA – 9 charts, sold my shares at 62 cents a few days later. But, I kept looking at the charts, and, I rebought the stock for the long haul (as an investment, rather than a trade – something I don’t do often these days) after I established where I thought base support would be and after a new TA pattern formed – a descending triangle. As of today, there are multiple bullish patterns being played out, which include a base-on-base, the descending triangle, and a pennant (according to my tea leaf reading, lol). The longer term charts I use also appear bullish. The 0.70 cent target you mentioned is a biggie in terms of various forms of support and resistance, and its the completion point of 2 of the aforementioned pattern targets. If we can pierce that price, it would confirm the breakout of the cup of the second base-on-base, and it will give us a higher probability of increased share price, as far as some TA traders (at least the ones I know) would be concerned. Hopefully, it will all play out! Oh yeah, since I’m in it for the longer haul, I subscribed to SIRI, and hope other investors have too. It’s pretty cool.