I am mobile this evening, so the usual charts will not be possible. We can however look at today's action and what it means to the equity. The most notable item of the date was a quick dip on some Apple news, followed by a quick recovery. Pandora did not fully recover from the same news, but SiriusXM did -- that is very telling. It also points to the relative strength that exists in this equity. SiriusXM literally had massive volume into a sell-off, and bounced right back. That tell us that the street sees value in SiriusXM at current levels. That does not mean that a healthy retrace is not possible, because it is. It does mean, in my opinion that any retracement (should one happen) will be short lived.
Simply stated, the story here is bullish. The EMA's are still in tact, as are support and resistance levels. I encourage you to look at yesterday's charts. They have not changed much, nor has the overall story.
That being said, there are a few things to consider as we go into tomorrow. While most bets have already been placed, we do need to consider that tomorrow could see us test between the 10 cent range of $2.80 and $2.90. That may seem tempting to some active traders, but I will say that I would not be one to trade here. Wait on the call. If I were still looking to enter I would gauge entry pearly in the session.
What I am looking for tomorrow is the stage to be set. If we close at $2.90 or above, the equity should test $3.00 with ease come Tuesday. If we close closer to $2.80, then $3.00 may be a short term crest point. The next few days will be interesting and I am sure many of you will be seeking information. Remember, I can only lay out what I think will happen, and all of you have different tolerance for risk, as well as different goals and strategies. At this moment I see potential in the next few sessions for a high of $3.15 and a low of $2.70. If I were to place odds on each I would say that in 10 bets I would place 7 of them on getting to the high and 3 getting to the low.