Pullback Buy in SOUNI started buying SOUN on a breakout above 3.35 two weeks ago. This was a classic breakout pattern with big volume on the advances and the stock was in the hottest group - AI. And shares surged 50% over the next 14 days.
I sold half my position at around 4.80. Since the stock topped just below the $5 mark back in February, this was likely to be a key resistance area and the SOUN pulled back as expected.
I added the rest of my position back on here at 4.15 on Wednesday.
If this rally is to continue, this seems like a likely bounce point. Not only is this a high volume node on the volume profile where the most trading has occurred since the breakout, it is also sitting on the 10-day EMA.
This represents a 20% pullback from last week's highs, and I would like to see buyers step in here if this stock is truly under accumulation. I do not expect to see SOUN go below 4.00. If shares break below 3.90, I will likely begin exiting my position.
If you do not own the stock, this is a decent place to buy in on a pullback. If you bought the breakout, however, this is a way to "press" the trade and risk some of your profits to see if this can be a monster win.
