SoundHound AI Inc. (NASDAQ:SOUN) shares are trading higher Wednesday as the stock tests a key support level near $7.00 following recent weakness. Here’s what investors need to know.
- SoundHound shares are powering higher. What’s driving SOUN stock higher?
Sellers Maintain Control As Stock Trades Below Key Levels
SoundHound is trading 3.2% below its 20-day simple moving average (SMA) and 29.7% below its 100-day SMA, keeping the intermediate trend pointed lower even as the stock attempts to find footing. Shares are down 14.83% over the past 12 months and remain closer to their 52-week lows than highs.
The positioning below key moving averages suggests that rallies may continue to face resistance unless momentum shifts meaningfully.
Momentum Signals Mixed With Bearish Bias
The RSI is at 43.95, sitting in neutral territory and indicating that selling pressure has eased but buyers have yet to take control. Meanwhile, MACD remains negative at -0.5736 and below its signal line at -0.5351, signaling that bearish momentum is still in place.
This combination points to mixed momentum with a slight downside bias.
Key Levels To Watch
Support sits near $7.00, an area the stock is currently testing. A sustained move below this level could open the door to further downside.
On the upside, resistance is near $7.50.
SoundHound Shares Edge Higher
SOUN Price Action: At the time of publication, SoundHound shares are trading 1.16% higher at $6.95, according to data from Benzinga Pro.
Image via Shutterstock
Login to comment