By: Gino Lattarulo
In another bullish move, stock action on Sirius XM (NASDAQ:SIRI) has pushed through a daily triangle pattern that has been forming since May, further confirming the $1.00 support level. We can also see that the price has moved back up through the 50 day Exponential Moving Average (red line) while still maintaining a solid level above the 200 day Exponential Moving Average (purple line). Of course, with earnings set to be released on Wednesday and the Non-Farm Payroll report coming out on Friday, the question will be whether the stock will maintain a bullish trajectory. Personally I think it will. I think everyone including the Wall Street bears can agree that the economy will probably not experience a double dip. Siri stock has been in the habit of marching to the beat of its own drum anyway and hasn’t really been following the dramatic swings in the market. Also, data from the National Auto Dealers Association (NADA) states that U.S. auto sales from the likes of Ford (NYSE:F) Toyota (NYSE:TM) and GM are projecting a 5.3% increase over last year and we already know that the Sirius/XM subscriber base is exponentially increasing at a nice rate.
Unless there is some great surprise in the earnings report, the stock action should follow the usual course of a triangle pattern break-out, which is to immediately re-test support before continuing on an upward path. The next resistance level is $ 1.10 and a weekly close above the $ 1.25 resistance will open the door fairly well to the $ 2.00 mark. There is no doubt in my mind that $ 2.00 is on the horizon within a year.
That’s a bold statement I know, and I may regret saying it. But what the hell, I’ve regretted a lot of things this year. Like thinking congress might actually be mature enough to work together on this train wreck of an economy instead of flinging their own feces at each other like a bunch of chimpanzees.
“their” own feces.
Yes, a new resistance level is definitely due.
both spellings are accepted
What stock price can we expect this year?
Aug 4, 2010: Today news reports and a Presidential announcement (making it official) say that BP just has successfully plugged the hole. There was a small jump in stock price of about +80 cents, then it held in lower varying plus ranges for a while, dropped to about -50 cents, now up about -40 cents. What’s up with that? What are the reasons for these kind of dips when the news is good? I’m a newbie so all comments appreciated.
oops -Obviously I’m asking about BP. I clicked on the comment link I thought was for B P.