Don't say you were not warned. I wrote distinctly about the chance that we can see SiriusXM test $3.60. No, it did not dip that low, but it did give up 6 cents on volume higher than the previous session. We remain on the wrong side of a strong support/resistance level. That key level now sits at $3.75.
SiriusXM added a caution flag on the EMA's. If you wanted confirmation of a dip, you now have it. In my opinion the short term downside risk is $3.60. This equity did not hold the line on very positive news about the acquisition of a telematics unit.
For the time being it would appear that the consolidation and coiling of the spring may happen in the $3.60's. What we want to see is the constriction of EMA levels. We are now down to 15 cents between the 5 day and 50 day. We may see total convergence at about $3.70 or $3.71. At least that's the call right now.
Support and Resistance
Exponential Moving Averages