The good news today is that SiriusXM appears to have normalized. We traded 66 million shares and closed down 2 cents. Moving down on lower volume is a good sign. We do not yet have a confirmed bottom, but the signals are apparent that we might. What we want to look for is below average volume on the downside. If we closed down at $3.69 tomorrow on 25 million shares, the signal of a bottom, or at least a consolidation, would be very strong.
The support and resistance is now going through its adjustments as well. In very simple terms, $4.25 has become a longer term goal again, and $4.00 a challenge. We have strong resistance at $3.84 and another wall at $3.97. These are two big hurdles to get past before we can begin thinking about $4.25 again.
We closed today just above the 100 day EMA. The EWMA's are still in flux, and have a very real potential to get uglier. We barely avoided a third warning flag in today's action (the 13/20 day). We are also in danger of the 5 day EMA passing below the 50 day EMA. This is bearish if it happens. The 100 day EMA is not too far below.
Thus, while it looks like a bottom is forming, we still need more technical data to confirm it. By watching things daily, you will be ahead of the curve.
Support and Resistance
Exponential Moving Averages