Sound Hound AI Stock Analysis | Massive Plays For This Week | SOUN Stock Price Prediction
TLDRIn this video, Junior Trader analyzes SoundHound AI's stock performance, discussing potential buy or short opportunities. Despite previous profitable plays, the current trend indicates a downtrend with key resistance levels around $7.57. Insider selling and a downgrade to 'sell' from 'overweight' add bearish sentiment. The video emphasizes the importance of technical analysis and following price action over personal biases for successful trading.
Takeaways
- 📈 SoundHound AI's stock is under analysis for potential buy, hold, or short opportunities.
- 🔍 The video presenter has taken three profitable trades on SoundHound AI previously.
- 🚫 The content is for educational purposes only and should not be considered financial advice.
- 💸 Insiders at SoundHound AI have sold shares worth $48,000, which may impact stock performance.
- ⬇️ SoundHound AI experienced a downgrade from Kor Fitz, Gerald to a 'Sell' from 'Overweight' with adjusted price targets.
- 📊 Technical analysis reveals the stock broke below the 20-day moving average, indicating a bearish trend.
- 🔽 The stock made all-time highs at $10.11 but has since been in a downtrend, failing to gain momentum on rebounds.
- 📉 A significant 'flush' occurred, suggesting a strong likelihood of continued downward movement.
- 🔄 The stock's trend line was broken, indicating a potential for further declines.
- 🤔 A potential short-term rebound is possible but is not expected to surpass previous resistance levels.
- 📉 If the stock continues to weaken, support levels at $4.89 and $4.77 may be tested.
Q & A
What is the main focus of the video by Junior Trader?
-The main focus of the video is to analyze SoundHound AI's stock performance, identify potential buying or shorting opportunities, and discuss the technical analysis of the stock.
What was the outcome of the three trades that Junior Trader mentioned in the video?
-The three trades that Junior Trader mentioned were all profitable.
What is the significance of insider selling in the context of SoundHound AI?
-Insider selling, where insiders sold shares worth $48,000, indicates that they are capitalizing on the stock's performance, but it is not considered a significant amount and should be taken with a grain of caution.
What was the recent analyst action on SoundHound AI's stock?
-Kor Fitz, Gerald downgraded SoundHound AI to 'sell' from 'overweight' and lowered the price target to $4.9 from $5.80.
What is the current status of SoundHound AI's stock price according to the video?
-The stock price is below the 20-day moving average and has experienced a flush, indicating a downtrend.
What is the potential resistance level for SoundHound AI's stock according to Junior Trader?
-The potential resistance level is around $7.5 to $7.8, which is also the area of the 200-hour moving average and previous zone of resistance.
What would be a potential long play scenario for SoundHound AI's stock?
-A potential long play scenario would be if the stock forms a consolidation or support, retests the downtrend, breaks out of the trend lines, and goes above the 200-hour moving average.
What does Junior Trader recommend as a trading strategy for SoundHound AI's stock in the short term?
-Junior Trader recommends that the stock is more likely to be a short play, especially if it rebounds to the identified resistance levels, as the stock is currently in a downtrend.
What is the importance of stop losses in trading according to Junior Trader?
-Stop losses are crucial in trading to manage risk, as they help to limit potential losses and ensure that the trader does not let their bias affect their decisions.
What chart patterns might be forming in SoundHound AI's stock according to the video?
-A head and shoulders pattern might be forming on the daily chart, which could indicate further price movement analysis.
How does Junior Trader emphasize the importance of price action in trading decisions?
-Junior Trader emphasizes that price action is the source of truth in trading, and sticking to the data and price action readings, rather than personal biases, is key to making money in the stock market.
Outlines
📉 SoundHound AI Stock Analysis: Opportunities & Warnings
In this video segment, Junior Trader discusses SoundHound AI's stock performance, focusing on potential buying or shorting opportunities. He shares his chart with three profitable trades and emphasizes that the content is for educational purposes only. He covers recent news, including insider selling and a downgrade from Kor Fitz Geral, and transitions into a technical analysis. Junior Trader explains the significance of the 20-day moving average and the stock's current position below it, indicating a bearish outlook. He also discusses the stock's all-time high, previous resistance levels, and the recent downtrend, concluding that the stock is not a buy and is more suitable for shorting.
🔍 Technical Analysis & Potential Rebound Scenarios
This paragraph delves deeper into the technical aspects of SoundHound AI's stock. Junior Trader outlines the potential for a rebound if the stock breaks above 62.8 cents intraday, which could lead to a test of the $6.80 resistance level. However, he advises caution, as the stock remains in a downtrend with significant overhead resistance from the 200-hour moving average and a falling trend line. He suggests that a break above these levels could signal a potential upside play, but until then, the stock is more likely to continue its downward trajectory. Junior Trader also discusses the importance of stop losses and price action as the ultimate truth in trading, rather than relying on personal biases.
🚀 Final Thoughts & Additional Considerations
In the concluding part of the video script, Junior Trader summarizes his analysis of SoundHound AI's stock. He reiterates that the stock is in a downtrend and that any potential rebounds should be treated with skepticism, especially considering the stock's weak performance and the lack of buying momentum. He also introduces the possibility of a head and shoulder pattern forming on the daily chart, which could further indicate a bearish outlook. Junior Trader encourages viewers to use the information provided to make informed trading decisions and reminds them that the market's price action is the ultimate guide, not personal biases or opinions.
Mindmap
Keywords
💡SoundHound AI
💡Stock Analysis
💡Insider Selling
💡Technical Analysis
💡Moving Average
💡Downgrade
💡Support and Resistance Levels
💡Trend Lines
💡Bearish
💡Short Selling
💡Price Action
Highlights
The video discusses the stock analysis of SoundHound AI, focusing on whether it's a good time to buy, sell, or short the stock.
The speaker, Junior Trader, has taken three profitable trades on SoundHound AI previously, which are displayed on his chart.
SoundHound AI insiders have sold shares worth $48,000, which is a point of consideration for the stock's performance.
There has been a downgrade of SoundHound AI's stock from Kor Fitz, Gerald, changing the rating from overweight to sell and lowering the price target from $5.80 to $4.90.
The price of SoundHound AI has broken below the 20-day moving average, indicating a potential bearish trend.
The stock has shown a series of lower highs on the hourly interval chart, suggesting a lack of buying momentum.
A significant price flush occurred, indicating a strong sell-off and a confirmation of a downtrend.
The stock broke a key trend line, which was a sign of a potential continued downtrend.
The speaker advises that the current situation is not conducive for a buy, and a rebound to resistance levels would still be a short play.
The 200-hour moving average and the previous zone of resistance present strong selling points.
A long play would only be considered if the stock forms a consolidation or support and breaks out of the trend lines.
The speaker emphasizes the importance of following price action and not personal biases for successful trading.
The video mentions that if the stock continues to fall and breaks the $4.89 level, it could potentially drop to $4.48.
The speaker provides tools for analysis, with links in the video description for those interested in accessing them.
The potential rebound in the stock could also form a head and shoulder pattern on the daily chart, which is something to watch out for.