Morning Trend | SoundHound AI consolidates with reduced volume, is a short-term rally about to ignite?
SoundHound AI (SOUN.US) experienced a continuous decrease in trading volume throughout the day on January 26, primarily consolidating sideways, with minimal intraday volatility, leading many short-term traders to exclaim "lonely." However, seasoned investors in the community generally find that such extreme volume contraction combined with price resilience often signals a buildup before a new round of short-term ignition. Market observations indicate that while the willingness for active trading has weakened, there is a slight stalemate between bulls and bears, with some periods showing tentative buying support. Additionally, the daily K-line has been consolidating for several days, with clear signs of volume divergence, which has heightened market expectations for subsequent sudden capital movements. Historically, whenever SoundHound's volume contracts to such extremes, any subsequent ignition by major players can easily trigger a rapid rebound from oversold conditions. Currently, the psychological game between bulls and bears is intensifying, with real-time news and popular tracking lists carrying significant weight, easily driving emotional surges. Aggressive players should focus on capital movements in the first 5-10 minutes of trading and follow up immediately if there is any activity. Conservative players are advised to confirm a simultaneous rise in volume and price to guard against false breakout traps
Technical Forecast·
