SIRI closes higher for the 4th day in a row
Sirius XM Holdings Inc. (SIRI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, SIRI ended Thursday at 5.20 gaining $0.15 (2.97%) on low volume, significantly underperforming the Nasdaq 100 (5.72%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SIRI as at Mar 26, 2020):
Thursday's trading range has been $0.27 (5.33%), that's below the last trading month's daily average range of $0.39. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for SIRI.
Prices are trading close to the key technical support level at 4.93 (S1). After having been unable to move above 5.32 in the prior session, Sirius XM ran into sellers again around the same price level today, failing to move higher than 5.34. The last time this happened on March 20th, SIRI actually gained 1.80% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Sirius XM. Out of 608 times, SIRI closed higher 50.16% 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 54.44% with an average market move of 0.68%.