Sometimes there is nothing better than consolidating while drifting up. SiriusXM closed up 4 cents today on lighter than average volume. I am still of the opinion that this equity can creep up toward $4.00, but it is getting into overbought territory with the RSI at 64.25. When the RSI passes 70 the equity is overbought.
Between the action we are seeing in the volume, the support and resistance levels, and the fact that we are seeing EMA's move up, but not constrict, I think the near term upside potential is slightly limited. The thing we need to watch is what are the risks to the downside. If you are buy-and-hold, do not worry....sit tight. If you are an active trader, understand that we are likely approaching a near term top followed by either consolidation or a retracement. Which one is likely most sensitive more to the macro-economic environment rather than anything SiriusXM does.
On the downside we have strong support at $3.72. That is the level we want to see hold. That level is actually bracketed by the 13 day and 20 day EMA. This adds to the strength at this level. The equity should be able to hold this area. If that breaks down we must look to the 50 day EMA at $3.56 to hold the line. I believe that we will range trade and consolidate between $3.70 and $3.90. We want to see this equity trade some shares in this area so that support gains strength. Now to the charts: