Good morning all. Quick update on Sirius XM (SIRI) as today is the final day needed to avoid delisting. As predicted yesterday in the chatroom, we opened down since we closed very strong with a very high RSI. Do not let that concern you as things look fine so far to stay above $1. We would need some very significant sells to close under $1 today which I see as very unlikely. Significant is not even the ideal word, we would need a massive panic selloff, I feel.
Per the charts below, you can see the 3 month daily chart and the 5-day chart had a high RSI at the close of yesterday indicating we could see a pullback today, which we did as the RSI resets now. Ground was found around the $1.15 level with some dips towards $1.14.
Click to Enlarge
Click to Enlarge
The bad news is the CMF is negative today indicating more selling pressure than buying pressure. The more important negative news, to me, is the significant drop on the A/D line and OBV. Ideally, we need the A/D line to move sideways or obviously up, to create a stronger support level for the bulls to attack from.
The good news is the RSI reset very nicely and put us in oversold territory briefly than quickly moved to neutral territory meaning no clear advantage to the bears but also no clear advantage to the bulls, yet. The A/D line and OBV need to move sideways and trend north for us to see a definite intraday move north as imminent. When watching the L2, I feel good about the support levels and currently do not feel we would go lower than $1.10 without a strong panic sell. Even with a panic sell, I can’t see us breaking all the support to under $1 without some type of major negative news, which isn’t likely unless you are a part of a poorly moderated forum with many shorts trying to scare you out of your positions. If that is the case, just come to our chatroom as it is moderated for that garbage. Since we know earnings should be positive, that is a huge cap in the feather for the bulls. With the RSI resetting, we we should have some room to move up. I still expect a roller coaster for the near future as the shorts try to win this battle.
Now I need to get back to trading today as I want to add to SIRI. Keep an eye on Jamba, Inc. (JMBA) as the RSI reset but the A/D line is still very nice. Ideally, we would have liked to see SIRI follow suit with the A/D line that JMBA did but it is not overly critical for today’s goal, which is to avoid delisting concerns entirely. Good luck out there.
Mike
At the time of publication, Kudrna was long SIRI and JMBA but positions can change at any time.
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