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.
Ford Motor Company (NYSE:F) continued is monthly advance this past week, closing at $16.28 and gaining 19.35 % since this time last month. This week’s technicals showed Ford continuing its 2-year upward trend after a choppy decline in early July with the rest of the markets. This past week’s close saw a slight decline of $0.02 from the previous Friday’s close, although it saw a steeper decline within the week with a starting price on Monday at $16.80 with increased volume at 83.6 million shares traded, above it’s average.
