Thursday, November 16, 2006

XM On A Roll

XM Satellite Breaks Out to 5 Month High
(www.antandsons.com, Nov 15)

In yesterday's blog post, we wrote that XM Satellite Radio Inc. (NASDAQ: XMSR) stock was approaching its $14.00 long-term technical resistance. XM shares have rallied nearly 40% since its late October low, mirroring a similar recovery after it made a new low in late July. A quick technical analysis observation indicates that the chart has formed a double bottom, indicated by the late July and October lows around $10.00. Another crucial factor in watching XM stock is to note that upward momentum has been building due in part to XM posting a narrower loss in the most recent quarter, and ongoing speculation that Sirius Satellite Radio Inc. (NASDAQ: SIRI) could make a bid for its satellite rival. This bullish environment has enabled XM shares to gather steam and roll over $14.00 resistance today, reach levels not seen since July. Confirming the technical breakout, XM shares are up $.71, or 5.10%, to $14.70 on heavy volume of 11.1 million shares in early afternoon trading. The next hump to get over is now $15.00....read more: here