SIRI closes lower for the 2nd day in a row
Sirius XM Holdings Inc. (SIRI) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SIRI ended Tuesday at 5.96 losing $0.03 (-0.5%), underperforming the Nasdaq 100 (0.34%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SIRI as at Apr 16, 2019):
Tuesday's trading range has been $0.10 (1.67%), that's slightly below the last trading month's daily average range of $0.11. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SIRI.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
The stock closed back below the 100-day moving average at 5.98 for the first time since April 10th. When this moving average was crossed below the last time on March 21st, SIRI lost -3.68% on the following trading day. After having been unable to move lower than 5.90 in the prior session, the market found buyers again around the same price level today at 5.91.
Although Sirius XM is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might speed up should prices move below the nearby swing low at 5.90 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Sirius XM. Out of 265 times, SIRI closed higher 50.57% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.72% with an average market move of 1.61%.