SoundHound AI’s (NASDAQ: SOUN) market sent a clear signal following its Q2 earnings report, surging more than 30% on the news and closing the week at its highs. The move reveals solid support at long-term lows, a critical support target given the ultra-high short interest, and a high probability that this market will complete a reversal.
While short-sellers had ample reason to sell into this market, they’ve overdone it, pushing short interest to over 40%, and now short-covering is in play, driven by a strengthening fundamental story. Technically, SOUN is showing a Double Bottom reversal pattern and has only a single hurdle remaining, as of early- to mid-August - the pattern’s baseline, a resistance point that may be easily broken.
