We are seeing classic consolidation here.  The good news is that it is happening in the $3.70’s.  The bad news is that the support levels below are still in flux, and the strongest support below at the moment (that is near) is at $3.51.  In order to see that support move up, we need to see the 50 Day EMA move up.  Right now the 50 day EMA is at exactly $3.51.

Essentially the 50 day EMA is gaining a penny a day.  In another week it will be approaching $3.60.  If we continue to trade between $3.68 and $3.75 during that period we will have substantially narrowed the gap between not only the successive EMA’s , but the 50 day and the 5 day as well.  In about 1 to 2 weeks, if consolidation continues, the equity will set up to run or to correct down.  That sounds like I am uncommitted, but the reality is that the technicals at that point will dictate what transpires.  For the moment the key is watching the consolidation and watching for the EMA contraction.

Volume

7-31 siri volume

Support and Resistance

7-31 siri sr

 

Exponential Moving Averages

7-31 siri ema