SOUN might be overbought and overvalued for a reversal
SOUNDHound AI on the 15 minute on Wednesday 60 hours ago, broke out after a trend down to
begin the year. The tailwinds of the technology stock earnings and their tailwinds pushed hard.
SOUN broke out through the entire high volume area and then rose above it. Pretty much the
same from the lower aVWAP bands into the uppers after crossing over the mean line.
On the three indicators, RSI , MACD and the Chop index bearish diveragence is seen. This may
be an early reversal in progress but then again it might just be prudent traders liquidating to
take full or partial profits to close out the week. I am running full on this, I will watch the
price action early next week to determine a continuation vs a reversal. Relative volume
and relative volatility may show long traders closing with targets reached and shorts taking
their positions causing a pivot high of even a " long squeeze". Alerts and their notifications are
set on a 5-minute time frame to allow for some early warning. On the other hand it SOUN
can put out some higher decibels I may decide to look at the 2/16 options chain and chart
for an OTM call in the $2.5 or $3 range.
begin the year. The tailwinds of the technology stock earnings and their tailwinds pushed hard.
SOUN broke out through the entire high volume area and then rose above it. Pretty much the
same from the lower aVWAP bands into the uppers after crossing over the mean line.
On the three indicators, RSI , MACD and the Chop index bearish diveragence is seen. This may
be an early reversal in progress but then again it might just be prudent traders liquidating to
take full or partial profits to close out the week. I am running full on this, I will watch the
price action early next week to determine a continuation vs a reversal. Relative volume
and relative volatility may show long traders closing with targets reached and shorts taking
their positions causing a pivot high of even a " long squeeze". Alerts and their notifications are
set on a 5-minute time frame to allow for some early warning. On the other hand it SOUN
can put out some higher decibels I may decide to look at the 2/16 options chain and chart
for an OTM call in the $2.5 or $3 range.
Trade closed: stop reached
Trade active:
Trade reopened on Bitcoin's rollercoaster ride back up. Call options striking $ 2.00 for tomorrow up 23% for today = holding full position 20 calls overnight and will close at HOD for this market tomorrow.
Trade active:
The Price appears ready for another leg higher after resting in consolidation. I hope the general market can trend up but things are a little dicey.
Comment:
Premarket has SOUND price pushing higher having been squeezed
a BB squeeze is underway so maybe a up tick day could happen after all and SOUN
get some tailwinds from big tech plays including NVDA earnings.