Volatile ride for SoundHound AI, Inc. stock price on Friday moving between $5.35 and $6.45

The SoundHound AI, Inc. stock price gained 15.46% on the last trading day (Friday, 12th Jul 2024), rising from $5.37 to $6.20. It has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the stock fluctuated 20.67% from a day low at $5.35 to a day high of $6.45. The price has risen in 6 of the last 10 days and is up by 55.39% over the past 2 weeks. Volume fell on the last day by -22 million shares and in total, 107 million shares were bought and sold for approximately $661.65 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

On May 13, 2024, it was reported that H.C. Wainwright gave SOUN a "Underperform" grade with a "hold" action.

The stock has broken the very wide and horizontal trend up. Breaks like this are often followed by swift and strong movements, and any correction down to the breakline at approximately. $5.58 is considered to be a "second chance" to hit a potential runner. It is, however, important that volume does follow the price as false breaks may appear and it may move back into the horizontal trend. Based on the rectangle-formation theory the stock is predicted to reach $7.26 sometime during the next 3 months.

The SoundHound AI, Inc. stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $4.73 and $4.55. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, July 01, 2024, and so far it has risen 59.38%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.

On the downside, the stock finds support just below today's level from accumulated volume at $5.37 and $5.09.There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, SoundHound AI, Inc. finds support just below today's level at $5.37. If this is broken, then the next support from accumulated volume will be at $5.09 and $5.07.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $1.11 between high and low, or 20.67%. For the last week, the stock has had daily average volatility of 14.76%.

The SoundHound AI, Inc. stock is extremely overbought on RSI14 (91). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

SoundHound AI, Inc. holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.