Long

SOUNDCLOUD - the chart says it all

Updated

In this case I let the chart speak for itself.

After a great revovery the recent days a massive breakout potential is on the verge.

Trade safe.

Trade active

Well that panned out for now. The title ofcourse should have read SoundHound, not Soundcloud, but can't fix it now.

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I see a bearish divergence on the 4h timeframe, with a decrease in volume, and reaching overbought territory. I'm expecting some volatility and a slight correction/retracement in the coming days, if that scenario plays out I'll increase my position on the reversal.

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There are also a few interesting candle types at the 4 hour and less timeframe. I am overall very bullish but will be interesting how the coming day/days play out and see when (if) the trend continues.

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Final note haha, another possibility is a retest of the pennant upper trendline. I would like to see that happening actually for a good entry expecting high volume and a strong reversal in that scenario.

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Final final note, should have zoomed out, but we are also closing in on a resistance level, if it breaks through here, the game is on.

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We blasted through the strong resistance around 5.54 before the bears were able to knock the price back down. However the retracement is not that large and for now it looks like some consolidation is going on. The low volume could suggest bulls are accumulating but also bears could be still hovering above the resistance line. Expecting a retest of the resistance level and if the bulls win we gain a new support level. Also on the four hour timeframe we seem to be in an upward channel, so a price swings to the bottom of the channel is also an option, but given the current consolitation at a steady level I don't see that happening. I added to my position and since I'm long on Soundcloud my stoploss is low. I used to be a daytrader and old habits die slow but I'm in this one for the long haul :) (with proper risk management ofcourse)

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Also note that the breakthrough through the resistance level was during pre-market trading so bears were waiting to take their profit.

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Common sense would suggest a retracement at this point but the stock is so trending and the bulls are strong, I wouldn't be surprised if we are headed straight for $10.20

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Looks like all bets are off.... Soundhound broke so many (major) resistance levels in the past days and even hours! Money keeps pooring in, everybody wants a piece of the action.

Be carefull though to set your stop loss, we could see a potential retracement to previous resistance level $12.50 happening close to end of trading hours, plus that new support being tested.

Next resistance potentially around $15 and of course around $18, after which we enter unchartered territory. Be careful that since this stock is HIGHLY trending, a drawdown could be fast and swift when people start taking profit.

Still bullish but trade safe!

Another option

make sure to protect your losses!... At one point a retracement is imminent.

Trade closed manually

Will make new analysis soon. Until then hope you made a profit :)

BowserMan

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