Why Struggling Sonos Stock Could Stage a Bounce Soon

The security hit a nearly two-year annual low today

Digital Content Manager
Sep 1, 2022 at 12:28 PM
facebook X logo linkedin

Since suffering a massive bear gap following its fiscal third-quarter earnings report, the shares of Sonos Inc (NASDAQ:SONO) have been on a downward spiral that's culminated in today's nearly two-year low of $14.76. However, there's reason to believe SONO could stage a bounce, based on a historically bullish signal flashing on the charts. 

According to a study from Schaeffer's Senior Quantitative Analyst Rocky White, SONO's multi-year low also comes amid historically low implied volatility (IV) -- a bullish combination for SONO during the past five years. In fact, during this time period, there have been two other instances where the equity was trading within 2% of a 52-week low, while its Schaeffer's Volatility Index (SVI) sat at a relatively low annual percentile, as is the case with Sonos stock's SVI of 49%, which sits higher than just 26% of readings from the past year. 

One month after these signals, the security averaged a 13.5% pop. From its current perch, a similar move would put SONO just below the $17 region, and above recent pressure at the stock's 10-day moving average. 

sono sept 1

Short interest has begun to roll over, down 8.6% in the last two reporting periods, however, there's still plenty of bearishness to be unwound. The 10.64 million shares sold short make up 8.5% of the stock's available float, and would take nearly four days to cover at SONO's average daily pace of trading. 



How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.