Shares of SoundHound AI, Inc. (ticker: SOUN) are displaying significant strength and volatility in today’s session, staging an impressive comeback after a sharp drop at the market’s open. The AI voice solutions company has attracted considerable investor attention, driving robust trading volume.
As of 1:43:37 PM EDT, SoundHound stock was trading at 0.38, for a solid gain of +3.42% on the day. This is a notable increase from the previous close of $11.09.
The intraday chart reveals a dramatic turnaround. After opening at 10.48**. However, buyers stepped in with force at that level, initiating a powerful V-shaped recovery. The stock has since been on a steady uptrend, climbing to a session high of $11.58. This type of sharp reversal often indicates strong underlying buying interest. Trading volume is high, with over 30 million shares exchanged, nearing the average daily volume well before the market closes.
Should You Buy or Sell the Stock Today?
The dynamic price action in SOUN presents different perspectives for traders and investors:
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For Buyers/Bulls: The strong V-shaped recovery from the day’s lows is a very powerful bullish technical signal. It suggests that the initial sell-off was absorbed by aggressive buyers, who have since remained in control. The sustained uptrend throughout the morning and afternoon reinforces this positive sentiment.
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For Sellers/Bears: Cautious investors might look at the 1-year analyst target estimate of $11.81, which the stock is currently approaching. Some may view this as a potential area of resistance. Additionally, the stock’s high beta (2.87) signifies that it is inherently more volatile than the overall market, which implies higher risk.
Opinion and Outlook
The immediate technical outlook for SoundHound AI stock is bullish, based on the strong intraday reversal and sustained buying pressure. The market’s ability to completely reverse a sharp opening loss and push into positive territory is a sign of resilience and strong demand for the shares.
The key resistance level to watch is the day’s high of 10.48 stands as a critical floor for the session.
Frequently Asked Questions (FAQ)
1. What happened to SoundHound (SOUN) stock today?
SoundHound stock dropped sharply to a low of $10.48 right after the market opened but then staged a strong V-shaped recovery, rallying throughout the day to trade significantly higher.
2. What is a “V-shaped recovery” and why is it significant?
A V-shaped recovery is a chart pattern where a security’s price suffers a sharp decline followed by an equally sharp and rapid recovery. It is generally considered a strong bullish signal, indicating that buyers have aggressively stepped in to reverse the downtrend.
3. Is the trading volume for SOUN high today?
Yes, the trading volume is notable. With over 30 million shares traded by early afternoon, it is on pace to exceed its average daily volume, which indicates a high level of investor interest and adds conviction to the price move.
4. According to the chart, is SoundHound AI a profitable company?
Based on the provided data, the Earnings Per Share (EPS) for the Trailing Twelve Months (TTM) is -$0.61, which indicates the company has not been profitable over that period.
5. What are the key price levels to watch for SOUN?
The key resistance is the day’s high of $11.58. The major support for the day is the low of $10.48.
6. How does the current price compare to the analyst target?
The current price of $11.47 is approaching the 1-year target estimate of $11.81 shown on the chart.
