I like what I saw today. Volume picked up and the stock moved. This shows promise. Yes, the move could be SiriusXM buying back stock, but that is good, and hopefully that is a dynamic we will see for a couple of years. There is nothing not to like here, as long as this continues. The next thing I would like to see is $3.50 on 60 million shares.
Volume is picking up. This is good. While I do not yet see a driver to $3.60, establishing a $3.50 close would go a long way to bringing such an event to fruition. What we want to see now is a continuation. If volume dips back down, it could be an indicator that the trading range will be $3.35, to $3.45. That is an upgrade from $3.30 to $3.40.
Support and Resistance
The resistance above is psychologically and valuation based. The support below is getting interesting. Essentially we have the next level of support at $3.24. We are setting up to establish a range between $3.35 and $3.45 or a correction to $3.25. I do not see a real reason as yet to run to anything beyond $3.50 unless the company uses share buybacks to drive it there. For whatever reason, I believe that the company is not yet going to use share buybacks as the cause of a driver. I instead see them using them as a support mechanism. Watch volume closely here. It will give you the early hint as to the next move.
Exponential Moving Averages
The EMA's remain bullish. Even better, the averages are all moving up. This bodes well for establishing a support level in the neighborhood. of $3.35 to $3.40. Once established, a support level in this area will become a wall of sorts. This is good for long holders as well as active traders. The biggest news here is that the 13 day EMA is now at $3.35. We want to see a big support level develop between $3.35 and $3.40.