The markets demonstrated some concerns of their own, and SiriusXM was not immune. The bad news is that the equity dipped to $3.86. The good news is that it happened on lighter volume. Essentially we saw some strength in the weakness today. That strength being that there were not as may sellers at current levels.
We did add a caution flag on the EMA's today. The close of $3.86 was below the 5 day EMA at $3.88. We are a few cents above another warning flag. If we do see a second warning flag, that becomes an action point for active traders. The downside risk an active trader is looking at is $3.71. That same trader, however, is aware that there are two support points between here and there. One ios at $3.84, and the other is at $3.79.
For active traders, watch the early action and see if the equity exhibits the traits of one that wants to break below $3.84. Those indications will be a move down on higher than average volume. If you see that happen, a test of $3.79 is the second watch point. In concept, not many active traders will make a sell move unless they see $3.79 break. At that point another 9 cents could fall off with relative ease (no support level). Thus tomorrow is somewhat of a confirmation day.
To the upside, a positive macro-economic event could be enough to hold the current line. This equity wants to test $4, but wants to have a compelling reason to do so. My take on this is that $3.95 has to be tested a few times before a bolder move can happen.
Longer term holders simply need to sit and watch. Your theoretical sell point is if the equity breaks the 50 day EMA at about $3.71.
Support and Resistance
Exponential Moving Averages