Well, it had to happen at some point. SiriusXM is testing lower levels. While it is doing it on lower volume, the volume was higher than previous sessions we have seen recently. There was volume at the end of the day, so I suspect our best friend (the share buyback) had something to do with that. I also suspect that without the share buyback these corrections down would be slightly bigger.
This price point actually allows the company to hop in early on Monday. If they do, I think the equity will make a quick run toward $3.55.
At this point we need to think in 5 cent increments with pops that can be 10 cent moves. It is going to be a process until the next compelling news comes out.
We do have not one, but two caution flags on the EMA's. If the equity dips to $3.45 we will add a third. If this equity stays below $3.50 we will add caution flags.
The danger below is the 50 day EMA at $3.32. If $3.46 is broken we will need to be ready for a dip. However, the share buyback dynamic can be powerful.
Support and Resistance
Exponential Moving Averages