SiriusXM started the day off with pretty normal trading activity. Then we got volume! The equity went up through $2.80 and seems to be on a trajectory to test $2.90...Not so fast! Be cautious here. Yes, we have a volume spurt, but we want to ensure that it stays and holds. Last evening I spoke to the fact that the action yesterday provided a nice little change in support and resistance and that the strong resistance at $2.80 was now reduced to $2.77 (just below where the equity closed.
I also said that I expected SiriusXM to test $2.80 a couple of times but essentially trade sideways. The day is still young, and while the volume spurt is quite good to see, it needs some confirmation. Are we on a pace to 75 million shares traded? It seems possible, but it also seems that this may simply be consolidation with a few tests above, albeit slightly higher than I anticipated last evening.
This is where watching the action pays off. Even as I write this the equity has gravitated back down to $2.81. The action looks like it will be $2.78 to $2.84 today. Stay tuned! We are not off to the races just yet, but we could be getting into the starting gate.