Soundhound - Who Let the Dogs Out

SoundHound AI has shown significant revenue growth recently, benefiting from a rising interest in AI-driven technologies, particularly in voice AI. The company's Q3 2024 revenue exceeded $25 million, marking an 89% year-over-year increase and underscoring a promising trajectory in its voice AI solutions across various sectors such as automotive and customer service.

After a 2 year period of what may be an accumulation range from 2022-2024, the stock has broken out of the previous range, into a potential uptrend that can lead this stock back to all time highs.

There are a few confluence zones that I would like to see respected on the chart marked by several indicators to establish the direction of the trend.

Firstly, the volume profile can give me an idea where the support zone would be, you can see these zones marked in orange being the value area high, and value area low of the range. The point of control marked in blue is where the majority of the volume in the range is traded. At the moment we have broken out of this trend and are hitting resistance at the 0.618 retracement zone at approx $7.60 - $8.

I would welcome a pullback to look for high probability entry zones on this stock. As we can see, we have a nice confluence at approx $6.50 where the Value Area High sits, on top of the anchored vwap marked in green. Just below sits the 0.382 fib level which can confirm a strong upwards trend.

I would welcome an entry at $6.50 zone if we can find buyers and support to bring this one back to the liquidity zone at $10.30 for a total of 60%. Stop loss would occur when the Vwap is lost, as well as price losing the value area high that could signal lower prices to come.

While SoundHound's AI technology may hold long-term potential, it is not without risks. Investors need to consider the company's ongoing efforts to scale and maintain profitability, as well as the volatile nature of the broader AI market. It is not unusual for these stocks to swing 10-20% very quickly.

Therefore, while it may be an exciting speculative play, it is essential to have strict Risk management when trading and monitor market stability.

交易進行

Taking a small position here on the gap down. Will be looking for the VWAP to hold.

註釋

Getting some support at the 0.382 my second entry zone.

註釋

Something I just recently noticed to give me some additional confluence on this position is the upward trend line overlapping the anchored Vwap.

Technically, this would be quite nice in terms of a break out, and confirming a change in direction by the average weighted price from the recent drop.

For tomorrow, we will have PPI data, which could be a catalyst for the market to move.

I will be watching this setup for a reaction at that vwap zone if we get there.