On one hand we like to see the stock heading up. On the other we want to see that move happen with volume. That day will come, it is simply a question of when. Looking at the technicals, I would expect that something compelling can happen in the not to distant future. As always, we want to look at the up side as well as the down side.
Sirius XM traded just 26 million shares on Friday. This is a low point and it means that $3.11 will be a baseline for any moves from here. We have technicals lining up just above and just below, with EMA's constricting to a point of calling some action. From this point any REAL news can send this equity on a run one way or another (depending on the flavor of the news). Overall I think there is strength at $3.00 as well as at $3.15. What we want to see from here is which direction the equity heads to after bottoming out on volume.
Support and Resistance
Support is moderate below and moderate above. It is almost as if this equity is setting itself up for a 5% run in one direction or the other. That could be a dip to just below $3.00 or a run to $3.25 or so. A savvy investor will watch the action in the next couple of sessions to see the play. The key here is that over the mid to longer term this equity wants to test above $3.25. I would say that such a test could be in the next few weeks.
Exponential Moving Averages
The EMA's are getting slightly better. We lost a caution flag, and it the equity can test $3.15 we will lose all of them. The current level is the key. The 5, 13, 20, and 50 day EMA's are getting uncomfortable. They are all within pennies of each other. By nature they want a bit more room. If the near term bearish signals can be dealt with it could set up a nice run. Will this equity test $3.00 again? If it does, it is because of the macro situation with the economy, bailouts, sequesters, etc. and not because of an underlying fundamental shift in the equity itself. Initiation of buybacks would help this equity out from a technical standpoint. The clock is ticking.