Leave it to the macro-economic situation to throw a wrench in the works of a good build-up. SiriusXM seemed poised to walk up, but alas, the caution took over and the equity retreated on higher than average volume. Looking at the daily chart it appears that SiriusXM may have stepped in the early afternoon to buy up the price a bit. The volume we saw today was the type of volume we wanted to see at levels above $3.60.
My caution on the downside seemed well warranted. It looks as though this equity can protect $3.50, but is not yet ready to make the leap. A close above $3.60 could start a little run, but getting that to happen may not be as quick as we would like.
On the EMA's we are close to seeing a caution flag. If this equity dips at all tomorrow we will indeed see a flag form in the 5 day EMA column. At this point it is not a worry, but watching $3.50 is important. The higher volume on a down day is not something we wanted to see. Tomorrow will confirm whether or not we need to worry a bit or if this is simply a small consolidation point.
Support and Resistance
Exponential Moving Averages