The action today on SiriusXM was quite good. The equity dipped down and then showed a recovery to close down just 1 penny. This all happened on lighter than average volume, which would seem to indicate a healthy consolidation. I was in hopes of seeing this test a new high, but alas... that was not in the cards. Investors should not that this is not yet enough consolidation to really carry a significant impact in the support and resistance, but it was enough action to begin the processes of seeing the EMA's step up.
Of course we want to see the equity rise, but given what happened today we are likely best served by seeing the equity consolidate and build a foundation for the next run.
The immediate downside risk is $3.51. If we can stay above that we should see support their increasing. The next level below that is about $3.42 or so. Thus holding $3.50 is important to keep the support foundation building at a higher level.
The immediate upside potential is $3.65 on lighter volume. Positive news ca see this spike to 52 week highs.
Simply stated, we want to see consolidation if we are absent news, and a pop on volume to a 52 week high if we get good news. Stay tuned, watch the volume, watch $3.50, and watch $3.63.
Support and Resistance
Exponential Moving Averages