$SOUN has been in a “Go” trend since gapping higher mid February.
Since then we have seen price step through a series of higher highs and higher lows. Each time a new high was made we saw a consolidation in the form of a flag or pennant that allowed investors the time to digest. Following each pattern, we saw a surge to new highs. Currently, price is falling from its most recent high in the form of what looks like a flag pattern. The “Go” trend remains in place but we are seeing weaker aqua bars. The most recent price bar was destructive and some might see that as a break out of a smaller pennant patter. At this point, given GoNoGo Trend tells us the “Go” trend is hanging on, we will watch the GoNoGo Oscillator as it tests the zero line from above. For this “Go” trend to survive, and ultimately prove to us that this is another Countertrend Correction (see red arrow) and nothing more, we will need to see GoNoGo Oscillator find support at zero and rally back into positive territory. This would give price the push it needs to make a run at another new higher high. If the Oscillator fails to hold the zero line and moves into negative territory, then we would expect further downside price action.
