You would not know it by looking at the close, but SiriusXM tested the $3.30's today. The action today happened on higher than average volume, and the caution flags posted Friday did their job of outlining the risk side of the equation. Despite positive headlines on auto sales today the equity closed down a couple of cents on higher than average volume.
I suspect that the company was indeed buying today, but that buying support did not come into play until the equity dipped. What this tells is that the equity is still susceptible to a dip, and could even test moving averages at the 50 day level if the situation is right. That being said, I believe we are pretty safe and will not test 100 day averages unless the wheels fall off of the proverbial bus.
We did avoid adding an additional caution flag, but barely. We have also been able to avoid a warning flag, though If the equity remains down at current levels one will develop.
The closing price of $3.46 happens to be the 20 day EMA. The early action is critical tomorrow. The upside we are looking for now is $3.50. Remember, we are working in 5 cent increments on typical trading with 10 cent pops.
Support and Resistance
Exponential Moving Averages