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November 20 Chart of the Day - Sirius XM

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A familiar "value stock" has reentered Berkshire Hathaway's portfolio satellite-radio operator Sirius XM Holdings (SIRI).  During the September-ended quarter, the Oracle of Omaha and his team purchased 9,683,224 shares of Sirius XM, which as of the closing bell on Nov. 14, 2023, were worth approximately $47.35 million.

Our first question was simply, why?

On the monthly chart price action technical analysis perspective this could make many shake their heads and wonder why because the chart looks like a "flat liner."  One that previously had life to the upside but after falling from grace has all but stopped moving.

So do the fundamentals really warrant this kind of investment from Buffet?  Maybe..

But we wanted to also see if there are technical reasons to get excited about this chart.  

Other than a relatively low price (trading around $5) we can see active movement (aka volatility) down on the daily chart this year ranging from $3.31 to $7.70 so enough to get excited about if you just bought nearly 10 million shares.

While there's no guarantees in the markets other than price cycling both up and down perhaps Buffet has identified value in Sirius again (he's previously bought, held, and disposed of his entire holdings before) and willing to hold on for the long term, especially since they pay about a 2.5% dividend.

At worst, as a former mentor used to always say, it can only go to zero!

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

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