Sirius Position Panning Out
I took a position in Sirius Satelite Radio (SIRI) this morning based on the same technical intraday indicators I used for the XMSR daytrade yesterday. Let’s take a look at the intraday chart and the buy,
Playing these indicators is like stealing candy from a baby if you know what you are doing. Once again, I banked off the MACD showing heavily oversold, and the Stochastics just barely underneath 20. Even better than both those indicators was the 50 Day Moving Average, which though cannot be seen, was right around $3.75. LASTLY and not leastly, I knew the high on 2/16 – the day before the merger news hit in – was $3.72, which was another big supporter. This was right on the money, the intraday low today for SIRI is $3.73! Let’s take a look at a daily chart of Sirius to see this even better,
You can now clearly see the support and resistance from the last two days of trade, which are excellent places to buy and sell short if you time them right. My target price for this position is just under $4, or back at the resistance of the 200 Day moving average. On the downside, if the stock trades below $3.72 you most likely sell depending on volume has to say about the push down. Total risk exposure as a result is $.04, and we are already up $.10, looking for another $.14. With a sell at $3.99 if we get it, we will have effectively attained over 6 to 1 on our money. Happy Hunting.
