SoundHound AI
Shares of SoundHound AI (SOUN) at the moment are buying and selling 40% off of their highs from just some weeks in the past, as the corporate discovered themselves to be the goal of a bearish report from quick promoting agency Capybara Analysis.
We’ve seen dozens and dozens of stories like this prior to now, and the overwhelming majority of them are short-term makes an attempt to do the reverse of a “pump and dump.” The corporations normally quick the shares after which rapidly cowl their shorts after a pointy decline.
ShoundHound shares are buying and selling at $6, which ought to present some round-number and technical assist. Any rally from this stage will trigger a quick response from any quick vendor to shut the place, as a $12 value might simply occur as this can be a inventory that has been on the bulls “purchase listing.”
I’ve been a vocal bull on SoundHound and am taking the chance so as to add to my place at present ranges.
lululemon
Shares of lululemon (LULU) are down nearly 20% after the corporate posted earnings outcomes which beat analyst expectations on the highest and backside strains.
So why is the inventory buying and selling decrease?
lululemon’s administration did some critical changes to the corporate’s outlook by guiding income and earnings for the subsequent quarter decrease AND guiding each earnings and income decrease for the subsequent fiscal 12 months.
The ensuing value drop takes LULU shares beneath all intermediate-term technical assist. Merchants will attempt to assist the inventory at $400, which can end in a short-term “dead-cat bounce,” however realistically, there’s much more draw back for the inventory.
Lengthy-term assist for LULU sits at $375, which is the place the inventory’s 20-month shifting common. A break beneath that pattern will put the inventory in a long-term bear market pattern.
Nike
Nike (NKE) shares are following swimsuit with lululemon right this moment, because the inventory is buying and selling decrease on their earnings report. Earnings outcomes have been $0.23 higher than expectations with in-line income. The corporate warned of a gross sales slowdown for the start of the subsequent fiscal 12 months, however nothing as dangerous as LULU.
Nike inventory slid right into a bearish pattern in January.
Immediately’s transfer breaks the inventory by means of crucial psychological assist at $100 with little technical assist in sight. From a long-term perspective, NKE shares have been in a bear market since June of 2022.
Shares are 48% off of their all-time highs.
Look ahead to round-numbered assist at $80, which additionally represents the inventory’s October 2022 lows.
In regards to the Writer
Chris Johnson (“CJ”), a seasoned fairness and choices analyst with almost 30 years of expertise, is well known for his quantitative experience in quantifying buyers’ sentiment to navigate Wall Avenue with a deeply rooted technical and contrarian buying and selling model.
… Learn full bio