Speculators have started to make a clear move to start taking from some of the higher performance stocks including SoundHound AI.
On Tuesday, shares of SoundHound (SOUN) dropped roughly 10% on average volume. Traders appeared triggered by the stock moving back below $20, a psychological price level that has acted as the lower price of the stock’s trading range since mid-December.
SoundHound AI specializes in voice AI technology, enabling natural language understanding and voice recognition for a wide range of applications. Its solutions power voice assistants, smart devices, and enterprise platforms, allowing businesses to integrate conversational AI for customer interactions.
Tuesday’s trading dropped shares of SoundHound to another psychologically significant support level.
Shares closed just above $17.50. This price acted as momentary resistance during SoundHound’s strong December rally. Typically, resistance levels for a stock will transform into support on the stock’s way back down.
For this reason, investors should expect the stock to experience another surge of selling if the $17.50 level is breached.
From a longer-term perspective, traders are likely to take the opportunity that a deep correction in SoundHound shares would offer. SoundHound stock has returned more than 800% over the last year as the stock has started to earn recognition from Wall Street analysts as a long-term 0AI Service provider.
Investors and traders looking for an opportunity to “Buy the Dip” on SoundHound shares should maintain a close watch on the $15 price. This price represents the next “psychological” trade level for the stock, followed by $12.5 which is where SoundHound’s bullish 50-day moving average resides.
