SiriusXM seems to be establishing a range. After peaking and then retracing and then peaking again only to retrace, the equity seems to be slightly above the previously established range and established a new foundation above $3.20. As investors we can not be comfortable here. We need to remain diligent, monitor news, and keep an eye on the technicals.
We saw SiriusXM hold the line on lower volume. This is the behavior of a lack of selling pressure below... at least on Friday. We want to see increases in volume and price over the course of a few days. This has happened for about a week at a time and the equity seems to make a notch upward even after the retrace. This points to the next target of $3.25. This is a tough level, but we now seem to be stepping up the foundation closer. In my opinion this equity is setting up a run to the $3.30's. The danger zone below to keep an eye on is $3.19. Watch volume closely if the equity approaches this level.
Support and Resistance
SiriusXM is establishing some interesting dynamics in support and resistance. We have strong support at $3.19 and what appears to be medium resistance at $3.23. The hard part is that above $3.23 are the new 52 week highs. There is a psychological wall any time an equity is testing news highs absent news. The right news could propel this equity. A lack of news means that the equity will have to work to get above, establish, and hold new highs. Absent news we need a close of $3.27 or better to get the next leg up.
Exponential Moving Averages - EMA's
The EMA's are looking green and looking good. The equity sits just above all EMA's and we have developed a small cushion between each. The key we need to watch is the 5 day EMA and the 13 day EMA. The 5 day EMA sits just below current levels at $3.20. The 13 day sits just above the $3.15 support level at $3.17. In my opinion if we break support at $3.19 we visit $3.17 or even $3.15. However, If we hold $3.20 we can begin probing and testing $3.25 establishing a foundation for the next leg up.