Friday was yet another interesting day from a technical standpoint with SiriusXM. The equity has gone all green on the exponential Moving Averages (EMA) chart, and has all but broken the flexible support and resistance level that has been bouncing between $2.74 and $2.77.
Before we get too excited, I would love to see confirmation. The support resistance level now sits at $2.76, but the EMA's are very tight. I am mobile, so the charts will be inserted tomorrow morning, but it is still a bit to early to call an overall trend to the upside.
The volume was where we wanted to see it on a breakout, but the equity never did test into the $2.80's. I consider that a weakness in the move. We want to see confirmation of a bullish move by seeing the equity test at least $2.84 on volume.
The EMA chart has the 5, 13, and 20 day averages all at $2.74. The 50 day EMA still sits at $2.70. While the EMA chart is currently all green, a close below 2.74 would change that quickly.
While I show support at $2.76, I feel that the important level s 2.75. The equity needs to hold that level. Watch $2.75 closely as well as $2.70 (on the downside). Watch $2.80 closely on the upside. Look for compelling volume. If SiriusXM can get above and hold $2.80 it will be bullish and will serve as confirmation.
To the downside we have support at the 50 day moving average, and then weak support at about $2.65. Below that is $2.60. Investors should keep the $2.60 level on their radar screen.
Being an active trader attributed point in time is tricky. Stay tuned.