Friday, SiriusXM gave up almost a dime on light volume. The equity closed at $3.08 on almost 38 million shares. In my opinion there is not really any worry here, as the equity is within the ranges discussed. Most dynamics remain the same. This is why I like to see an equity break through levels on high volume. The lack of strength in the recent upward move became evident when the equity gave up the gains in one swoop.
Volume is still light, but the equity held support at $3.06. The problem is that it broke the real strong support at $3.10. Thankfully this happened on low volume. We are seeing consolidation at this point and simply need patience.
Support and Resistance
Watch $3.06 and $3.10 closely. We want to see what happens with volume as these levels approach or get tested. In my opinion there is opportunity here for those wishing to add shares.
Exponential Moving Averages
We have TOTAL consolidation on the 5, 13, 20, and 50 day EMA at $3.09. It does not get any more tightly coiled than this. The risk below is the 100 day EMA at about $2.95. The potential above is a desire for this equity to test above $3.20.