SOUN – Daily chart breakdown
Hi Shoqat, thanks for the question. Here's how the daily chart looks right now.
## Structure
SOUN has been making lower highs since August (~8.20 → ~7.30 → ~6.20), so the trend is still bearish.
The main level is the 5.82 support. It has held as a floor several times since April.
Yesterday's daily candle closed below it at 5.72, and pre-market is at 5.66. That's the first daily close under this support in a while.
Two scenarios
Breakdown confirms. If price keeps closing daily candles below 5.82, that level is likely to turn into resistance. There isn't much structure underneath until the 3.95 zone, which is the next major support on this chart.
False break and reclaim. In August, price wicked below 5.82 and then recovered strongly. If we get a daily close back above 5.82, today's move could turn out to be a fakeout or liquidity grab. That would put a retest of the 7.28 area back in play. One thing pointing this way: yesterday's breakdown came on volume of about 18M, which is below the 30-day average of about 20M. That suggests the selling didn't have strong conviction.
Is it a good buy here?
Right now price is sitting between the two scenarios. Buying here means guessing which one plays out. The more patient approach is to wait for confirmation:
a daily close back above 5.82 for the upside case, or
a move down toward the 3.95 support if the breakdown continues.
Keep in mind
Short interest is around 40%. That can fuel sharp squeezes upward but also adds volatility in both directions.
Earnings are about 4 weeks away, and that event could override the technicals.
Size your position small on a stock this volatile.
Education only. Not financial advice.
