SiriusXM gave up some price today, and while volume was lower than normal, it was higher than the day prior. The equity showed two distinct drops on volume that was higher than at other points in the day. The first volume spike took it down to $3.15 and the second to $3.13.
Here are my concerns.
1) The volume was higher than the previous session.
2) It gave up on the support level at $3.17.
3) It gave up the 13 day EMA at $3.17.
4) It gave up the 20 day EMA at $3.16.
5) It did this on more pronounced volume than the previous session.
The volume today was below normal but higher than the previous session. The higher volume spikes during the session resulted in a lower share price. This would indicate selling pressure above the buying pressure, but not so much that the equity dipped to the 50 day EMA. I have stated that the equity was getting boring and that it is during boring times that the equity will make its boldest moves.
Overall I still remain bullish on the equity, but this move today does make us consider the 50 day EMA and the next support down which are both at about $3.10. My immediate opinion here is that the strength at $3.10 will not be broken. The technicals point to this. It is actually a decent entry point for a savvy trader.
Support and Resistance
Support and resistance is looking interesting. There is strong support at $3.10 and moderate resistance at $3.17. What we want to do is watch the volume on these key levels to see how the equity relax. If one of these levels is taken out it seems natural to test the next level beyond. On the downside this means $3.02. On the upside it is $3.20. With strong support at $3.10, I believe that we will not see it broken. My bias is to the upside.
Exponential Moving Averages - EMA's
The EMA's, believe it or not, only have one caution flag. There is preliminary caution in that just a penny more down and we are looking at a few caution flags. What we want to see is this equity essentially bounce from here. If the equity does give up a couple of cents on lower volume I would see it as a buying opportunity because it would provide data that the pressure to the downside is drying up.
This will be interesting. It looks like we may get a couple of days of mini consolidation but in my opinion this equity wants to pop above $3.15 and try to establish a run at 52 week highs.