Technical Analysis of Stock SOUN 5/8/2024
Updated
Technical Analysis of Stock SOUN
Introduction:
SOUN, founded by a computer scientist from the dot-com era, has garnered significant attention from investors, including heavyweights like NVDA and Kleiner Perkins. Notably, Kleiner Perkins' backing is a considerable endorsement. The company's innovations, such as AI-powered burger ordering at White Castle, underscore its potential in the market.
Daily Chart Technical Analysis:
Overview:
This analysis delves into both the broader picture and recent price movements of Stock SOUN
Daily Chart #1:
This chart illustrates the complete price history of Stock SOUN, revealing its trajectory since going public in April 2022. After an initial crash to $1 by the end of 2022, the stock traded sideways between $1.60 and $4.70 from January 2023 to February 2024. During this period, it struggled to breach the resistance zone of $3.50 to $4.70. However, by the end of February 2024, a surge in trading volume facilitated a breakout, with the stock reaching a high of $10.25. Subsequently, there was a significant pullback of -65%, bringing the price back to the $3.50 to $4.70 resistance zone.
Observations:
This breakout from an accumulation stage, followed by a pullback to a historically resistant zone, presents a compelling opportunity. The confirmation of the breakout by massive trading volume adds further credibility. We will now assess if there is a viable entry point for a long position.
Daily Chart #2:
Here, we focus on the breakout and subsequent pullback to the $3.50 to $4.70 resistance zone. The breakout on February 26 led to a surge in prices to the $10 range. However, as the breakout reached its peak, a descending triangle formed, indicating an imminent pullback. This pullback retraced the price back to the $3.50 to $4.70 zone, where it found support and broke through the pullback trendline. The price is now attempting to establish the $3.50 to $4.70 zone as a support level, forming an ascending triangle. On May 6th, the price broke out from this triangle and above $4.70. Concurrently, the MACD crossed above its signal, signaling bullish conditions.
Implications:
The technical indicators suggest a favorable outlook, especially with earnings scheduled for May 9, 2024. These factors indicate potentially bullish earnings.
Trade Strategy:
Entry: $4.81
Stop Loss: $4.06 (-15.59%)
Target #1: $10.00 (+107.90%)
Target #2: $15.00 (+211.85%) - There's a possibility of exceeding this target; I'll trail if the price exhibits parabolic movement beyond $15.
Introduction:
SOUN, founded by a computer scientist from the dot-com era, has garnered significant attention from investors, including heavyweights like NVDA and Kleiner Perkins. Notably, Kleiner Perkins' backing is a considerable endorsement. The company's innovations, such as AI-powered burger ordering at White Castle, underscore its potential in the market.
Daily Chart Technical Analysis:
Overview:
This analysis delves into both the broader picture and recent price movements of Stock SOUN
Daily Chart #1:
This chart illustrates the complete price history of Stock SOUN, revealing its trajectory since going public in April 2022. After an initial crash to $1 by the end of 2022, the stock traded sideways between $1.60 and $4.70 from January 2023 to February 2024. During this period, it struggled to breach the resistance zone of $3.50 to $4.70. However, by the end of February 2024, a surge in trading volume facilitated a breakout, with the stock reaching a high of $10.25. Subsequently, there was a significant pullback of -65%, bringing the price back to the $3.50 to $4.70 resistance zone.
Observations:
This breakout from an accumulation stage, followed by a pullback to a historically resistant zone, presents a compelling opportunity. The confirmation of the breakout by massive trading volume adds further credibility. We will now assess if there is a viable entry point for a long position.
Daily Chart #2:
Here, we focus on the breakout and subsequent pullback to the $3.50 to $4.70 resistance zone. The breakout on February 26 led to a surge in prices to the $10 range. However, as the breakout reached its peak, a descending triangle formed, indicating an imminent pullback. This pullback retraced the price back to the $3.50 to $4.70 zone, where it found support and broke through the pullback trendline. The price is now attempting to establish the $3.50 to $4.70 zone as a support level, forming an ascending triangle. On May 6th, the price broke out from this triangle and above $4.70. Concurrently, the MACD crossed above its signal, signaling bullish conditions.
Implications:
The technical indicators suggest a favorable outlook, especially with earnings scheduled for May 9, 2024. These factors indicate potentially bullish earnings.
Trade Strategy:
Entry: $4.81
Stop Loss: $4.06 (-15.59%)
Target #1: $10.00 (+107.90%)
Target #2: $15.00 (+211.85%) - There's a possibility of exceeding this target; I'll trail if the price exhibits parabolic movement beyond $15.
Note
Cheers. Definitely nice to see earnings going as expected.Note
so far, so goodTrade active
trade is now up over 350%
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.