SiriusXM saw a nice move up today on big volume. Over 165 million shares changed hands with the equity taking out $3.30 with authority. There was no real test of $3.43, but after the last few months of relative weakness, these signs of life are very welcomed. The action today was consistent and positive. I even like that the equity did not over-reach on this move.
We saw additional caution flags come down today. Long time readers know that there is a good propensity for a move when we see two or more caution flags appear or disappear. Bottom line. This equity is shifting to a bullish stance. The next test is $3.43. The bigger test will be $3.60. Let's take this a step at a time.
We want to see this equity pass by $3.43 on high volume. If we settle down a bit first, we want to hold $3.30 and build into a move above $3.43. I carry the current risk at about $3.20 and the current potential at about $3.50. If I was on the sideline I would call SiriusXM a cautious buy at this point. The reason I am holding back from a full buyt for a sideline player is that getting past $3.43 could be a process. If we pass that level, the buy signal is stronger.
Let's not get ahead of ourselves on this new bullish action. Take it a day at a time. There will be some modesty in the quarterly report. We need to see how the company frames the quarter and if the street will be more focused on the near term or the second half of the year.
Support And Resistance
Exponential Moving Averages