I know that you do not want to hear this, but it is true. The technicals on SiriusXM are simply not as pretty as we would like to have seen. Despite the fundamental story remaining in tact, the stock has yet to be able to show itself as a growth story in 2014. If it were not for the share buybacks, there would not be much to get excited about. There...I said it.
We saw SiriusXM take a trip down into the $3.30's on volume. Simply stated, there was not enough fuel in the call to take SiriusXM up to new heights. making matters worse, the volume Friday picked up even more showing that a trip into the $3.20's may be in the cards. The support and resistance is not pretty either. Real support does not exist until $3.23, and real resistance is now sitting at $3.37. Breaking below $3.40 was not a good situation at all. It is going to take a lot of work to even hope seeing $3.50 this summer.
The EMA's have now turned ugly. We have four caution flags and two warning flags in play. the chances of adding at least two more warning flags are very high. The bottom line is that we need to wait for volume on the downside to dry up before we can really assess where or when this equity might reverse itself.
Support and Resistance
Exponential Moving Averages