With each passing day, I am more and more convinced that SiriusXM is buying up shares. We simply have volume moving all over the place. Today, the volume was higher than average, but well below what we saw yesterday. SiriusXM drifted back down again, and even broke below $3.40 for a brief period of time. We are fare from being out of the danger zone.
As stated, support at $3.43 broke. We were fortunate that the equity bounced back up. However, even testing the range below $3.40 is a scary prospect to consider. The story here remains quite similar to what I have written in the past few articles. We need caution.
The EMA's still look ugly. Every category is moving downward, and as yet, this equity is not demonstrating an ability to get above and close above the 5 day EMA. We need to watch the downward side much more closely than the upward at this point. In my opinion we are not in danger of the equity making a sudden burst upward, while we are in danger of it drifting and testing lower.
Support and Resistance
Exponential Moving Averages