I like what I saw today.  Volume picked up and the stock moved.  This shows promise.  Yes, the move could be SiriusXM buying back stock, but that is good, and hopefully that is a dynamic we will see for a couple of years.  There is nothing not to like here, as long as this continues.  The next thing I would like to see is $3.50 on 60 million shares.

Volume

Volume is picking up.  This is good.  While I do not yet see a driver to $3.60, establishing a $3.50 close would go a long way to bringing such an event to fruition.  What we want to see now is a continuation.  If volume dips back down, it could be an indicator that the trading range will be $3.35, to $3.45.  That is an upgrade from $3.30 to $3.40.

5-14 siri volume

Support and Resistance

The resistance above is psychologically and valuation based.  The support below is getting interesting.  Essentially we have the next level of support at $3.24.  We are setting up to establish a range between $3.35 and $3.45 or a correction to $3.25.  I do not see a real reason as yet to run to anything beyond $3.50 unless the company uses share buybacks to drive it there.  For whatever reason, I believe that the company is not yet going to use share buybacks as the cause of a driver.  I instead see them using them as a support mechanism.  Watch volume closely here.  It will give you the early hint as to the next move.

5-14 siri sr

Exponential Moving Averages

The EMA’s remain bullish.  Even better, the averages are all moving up.  This bodes well for establishing a support level in the neighborhood. of $3.35 to $3.40.  Once established, a support level in this area will become a wall of sorts.  This is good for long holders as well as active traders.  The biggest news here is that the 13 day EMA is now at $3.35.  We want to see a big support level develop between $3.35 and $3.40.

5-14 siri ema