Investors in Sirius XM Radio are likely so excited to see the equity over the $1.00 that they are ignoring the gaps created as the stock vaulted upward. Technical traders oft speak of gaps always being filled, and historically speaking, this is often the case. the downside here is that one of the gaps that was left behind sits below the $1.00 mark. Oh the frustration!

Personally, I believe this could be a case of a gap being left behind. The move above $1.00 was aggressive and built on higher than average volume. Sirius XM left a gap at $0.97 as well as at $1.07. The gap at $1.07 has a chance to fill durring tomorrows trading session. Part of my reasoning behind this thinking was the action today. Sirius XM was able to move up toward and above resistance at $1.14, but was unable to hold that level and closed at $1.11. The equity actually hit a high of $1.18 and the low was $1.10. In essence, almost all gains today were erased in the last hours of trading. Volume was high, but not as high as some sessions we have recently seen.

From a technical standpoint, most indicators are bullish on Sirius XM Radio. This gives some the investors an extreme confidence in the next few trading sessions, while others will always remember those pesky gaps that lay just below current trading levels. The only thing that would make the situation rosy for everyone is a sharp run down to fill the gap with a strong rebound right back up to current levels. If that were to happen, most technical traders would be quite happy.

Currently there is weak support at $1.10 and $1.02. Stronger support sits at $0.98, just above the lower gap. The strongest support sits at $0.90. If Sirius XM can fill the gaps and bounce upward on heavy volume, support strength at $0.98 and $1.02 would strengthen, and by doing so allow a deeper confidence that the equity can remain above the $1.00 threshold needed to regain NASDAQ compliance.

Fridays can always be interesting trading days. Will Sirius XM hold the line or fill the gap. Tomorrow will be a day to pay attention to action, volume, and of course, price.

Position - Long Sirius XM Radio