SiriusXM started the day off with pretty normal trading activity.  Then we got volume!  The equity went up through $2.80 and seems to be on a trajectory to test $2.90…Not so fast!  Be cautious here.  Yes, we have a volume spurt, but we want to ensure that it stays and holds.  Last evening I spoke to the fact that the action yesterday provided a nice little change in support and resistance and that the strong resistance at $2.80 was now reduced to $2.77 (just below where the equity closed.

I also said that I expected SiriusXM to test $2.80 a couple of times but essentially trade sideways.  The day is still young, and while the volume spurt is quite good to see, it needs some confirmation.  Are we on a pace to 75 million shares traded?  It seems possible, but it also seems that this may simply be consolidation with a few tests above, albeit slightly higher than I anticipated last evening.

This is where watching the action pays off.  Even as I write this the equity has gravitated back down to $2.81.  The action looks like it will be $2.78 to $2.84 today.  Stay tuned!  We are not off to the races just yet, but we could be getting into the starting gate.