Yesterday may not have been a great start to the week for Sonim Technologies (NASDAQ:SONM) as the stock tanked by as much as 20% amidst heavy profit booking. Despite the steep fall, it is important for investors to keep in mind that in the past week the stock is still up by as much as 63%.
Trading Data
On Monday, SONM stock slumped 20.16% to $1.03 with 7.16 million shares, compared to its average volume of 3.01 million shares. The stock moved within a range of $0.9950 – 1.3000 after opening trade at $1.24.
Major Trigger
In this situation, it may be a good idea for investors to figure out if the stock could in fact go on another rally any time soon. The mobile phone firm saw its stock take off last week in a big way. While it is true that there was no news about the company, experts believe that the macro situation led to the surge in the stock.
At the time, the hike in the interest rate from the Federal Reserve was one of the reasons for the rally. However, in addition to that the conflict between Ukraine and Russia had also proven to be a major trigger for investors who were looking for buying dips. However, it is a fluid situation and things may change quickly. Hence, it is going to be interesting to see if the stock can actually manage to hold on to its gains.
Technical Data
SONM stock is trading above the 20-Day and 50-Day Moving averages of $0.86 and $0.71 respectively. However, the stock is trading below the 200-Day moving average of $2.63.
