Well, this is what I would call a confirmation day. SiriusXM was up yesterday on good volume and followed it up today by moving up further on higher than average volume again. This is a good sign. While volume was lighter than yesterday, we still see a confirmation that the bounce off of $2.33 was real, and that this company is even capable of setting up for a decent run.
This update will lack some of the usual charts because I am still dealing with trying to get files from a computer that had some sap (yours truly) spill coffee into it. I had not done a backup in a few weeks, and thus it will take some time to re-enter the data if I have to. Before investing that type of time, I am in hopes of getting the files from the now caffeinated computer.
The volume story is looking pretty good. Volume did lighten up, but was still above average. While that means that this move had some strength, it was not enough to take it to the next level of $2.54. The next thing we watch for is what happens to volume as SiriusXM tests new support at $2.46 and resistance at $2.54. These two levels provide a great possibility in trading range that traders will like.
Support and Resistance
The key levels here are $2.46 and $2.54. This will set the tone for the next moves for SiriusXM. What we want to see is this equity testing $2.54 on better than average volume. In some ways we want to see a methodical move more so that a leap. If SiriusXM and the street can get used to the idea of support in the mid $2.40's without Liberty buying pressures, it will set the stage for higher levels.
Exponential Moving Averages - EMA's
Here we have a chart. The action today allowed SiriusXM to perhaps reverse the technical dominoes. As you can see, the 5 day moving average is just below the 13 and 20. If SiriusXM can close at $2.49 again tomorrow, it may be enough to take out two danger flags. As always, there is caution. A close below $2.46 and we could see a new danger flag come into play. This is where the trend is your friend, and with two up days on volume, the trend is up.