SiriusXM does not seem to be able to move. Support is broken and the EMA's are consolidating at $3.10. The equity closed at $3.08 on moderate volume. The price of the equity is below the 5, 13, 20, and 50 day EMA's and just above the 100 day EMA which sits at about $2.95.The good news is that even if the equity were to test the 200 day EMA, that average is now up at $2.80. While testing that level may seem real bad, it is far better than the battle that was happening for weeks at $2.50.
For whatever reason, the equity simply seems stuck. Financials should be good, but that does not seem to be enough at the moment to drive the stock. I feel that this equity wants to test higher, but it needs a solid foundation from which to build. I think that $2.95 is a possible base with a very remote chance at $2.80. If we do test lower levels we should have plenty of warning. The next test is $3.15.
We want to see the equity test above the $3.11 level on volume of at lest 70 million. If that does not happen then there may not be enough strength to conduct a real test of $3.15. We want to pass $3.15 on at least 80 million shares.
Support and Resistance
The key levels here are $2.99 below and $3.10 (preferably $3.11) above. We are seeing the equity drifting to lower and lower levels. This is changing support and resistance levels as well as consolidating the EMA's at about $3.10. This creates an interesting dynamic. The $3.10 level can either become a wall of resistance or a strong foundation of support. The action point is whether or not this equity goes ahead and tests $2.99 or can close above $3.10 on good volume. Pay attention because the action level will be established in the next few sessions.
Exponential Moving Averages - EMA's
This is getting interesting! The EMA's are consolidating at about $3.10, just above current levels. This is getting to be a coiled spring that wants to let loose one way or the other. The risk? The 200 day EMA at about $2.80. The potential? Testing $3.25 again. Pay close attention at current levels and if this equity tests below $2.99. On the upside pay attention at about $3.15.