After what had been a bullish few days for Sirius XM stock, the equity retraced and then recovered yesterday. The impact of yesterdays action was that the stock tested support levels and then recovered to close above them on moderate volume. This is a healthy reaction to the recent upward trend, and in effect adds strength to the support level at $1.02 (very strong support), and bolsters the support level at $1.05 (weak support).
What investors want to look for today is for the equity to remain stable in price on moderate volume. With the Russell reconstitution happening tomorrow after the close, volume will be huge, and the Russell bump will help bolster support levels even further. The more pre-russell volume we see at current levels the stronger a foundation we will have above $1.00.
Position - Long Sirius XM Radio