SiriusXM has eased up on the challenge of the $3.60 and has in fact spawned a caution flag in the EMA chart. I am not really worried though because the critical item is simply staying above $3.50. We are currently sandwiched between strong support at $3.48 and strong resistance at $3.61. Today was a down day on lighter volume than the previous session. In my mind this bodes well as it indicates that desire to sell in the mid $3.50 is not very strong. Then again, we do not yet have enough buyers to propel the equity through the $3.60 level. We have a small standoff, but the good news is that most of the technicals are bullish. The bearish technicals include the MCAD and the RSI. The RSI indicates that SiriusXM is in overbought territory.
What do we do? In my opinion we wait and see. As long as the equity can hang above $3.48 I am not very worried. I do want to keep an eye on the EMA chart though. One caution flag tells us to keep watch. If we add more, then we could be in for a short term stalemate or even a dip. Again, the key level is $3.48. The upside will be a slow process, so ride along. In my opinion active traders will get involved on a dip below $3.48 on volume or a pop above $3.61 on volume. Until a move happens on volume, the moves are mere feints.
Support and Resistance
Exponential Moving Averages