This update will not feature the usual charts. I got called away rather suddenly on Friday and left my thumb-drive on my desk. That does not stop the information though, and regular charts will be back after Monday's close.
SiriusXM painted the close to the upside Friday. It bounced off of the support level at $2.70, and exhibited some strength by closing over $2.75 on the up side. This is all bullish behavior and in line with the mid and long term expectations of the company. I still believe however that this company will test the waters below $2.70 for a short period of time prior to the conference call.
SiriusXM is in a tough position from a technical standpoint. The street knows that a "bomb" for positive momentum could drop any time, and it is tough to bet against that.
rather than playing this one, it may be wise to set some parameters that will lessen the risk. If you are out and looking for an entry point, the behavior at $2.80 and $2.70 are key. With options expiring this coming Friday, there is every reason in the world to expect an interesting trading week. Interest in PUTS is up substantially, so there are a lot of people betting on some sort of price correction.
From a volume standpoint we want to see actions at key levels. From a support and resistance standpoint those levels are $2.70 and $2.80. From an EMA standpoint, the signals remain bullish. I will effort a bullet point i the morning, and work on some more technical updates as early as I can. Stay Tuned!