$SONO – I love the sound of a good breakout – March 12, 2021

by DAN SONO 
This is Scott with your Chart of the Day. I want to take a look at Sonos ( NASDAQ: SONO ). I love Sonos ( NASDAQ: SONO ), I don’t have any, I ended up getting the Samsung sound bar. But the Sonos ( NASDAQ: SONO ) chart is looking pretty good.

As you can see here the stock has been able to hold above, for the most part, its 21-day exponential period moving average. We have a little bit of a rounded bottom here and it is just kind of flagging near its recent highs. If I draw a little line going across, you can see how this level has acted as resistance and it’s acting as resistance against a little bit of a high flag here happening above all the major moving averages.

I didn’t buy this today because today’s volume was pretty anemic, which tells me, this stock could potentially continue to just consolidate sideways for a little longer. But I think this stock could be actionable with a move through $42.00 coming on higher than average volume. So I am going to set an alert just below $42.00, wait for it to trigger and see how it looks. I will want to see higher than average volume coming on an intraday time frame before taking a position.

So here’s another stock to add to your Watch List; let’s set some alerts and see how it plays out.

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