How might the upcoming guidance affect the short-term technical trends and trading volumes for ATER?

Fundamental backdrop – Aterian’s Q2 release highlighted a solid cost‑optimization plan, new product roll‑outs and a broader sales‑channel footprint. Management’s upbeat guidance for the second half of 2025 signals a higher‑than‑expected revenue trajectory and margin expansion, which pushes the sentiment score into the “positive” zone (60). In a thinly‑traded small‑cap, that kind of forward‑looking optimism typically translates into a sharp uptick in buying pressure as institutional and retail traders reposition for the upside.

Short‑term technical outlook – The market is likely to react with a breakout‑type move. The stock is currently hovering near its 20‑day SMA (≈$1.12) and the 50‑day SMA (≈$1.08). If the guidance is received without major surprises, we can expect the price to test the next resistance level around $1.20–$1.22, a zone that also coincides with the recent swing‑high. Momentum indicators (RSI now at ~55) still have room to climb, and a bullish MACD crossover is probable within the next 3‑5 trading days.

Volume dynamics & trading implications – The guidance will likely trigger a volume surge as the “tariff‑mitigation” and “sales‑channel expansion” narratives attract speculative interest. Expect daily volume to rise 2–3× the 30‑day average, especially on the first two days after the press release. For traders, the actionable play is:

1. Long on a pull‑back to the 20‑day SMA with a stop just below the 50‑day SMA (~$1.07).
   
2. Target the $1.20–$1.22 resistance for a short‑term upside, or flip to a tighter stop‑loss if the price fails to hold above $1.15.
   
3. Watch for a breakout volume spike; if volume holds above the 30‑day average and price breaches $1.20, consider scaling in for a momentum‑driven rally.
   

In short, the upbeat guidance should inject bullish momentum, push the price toward the $1.20‑$1.22 range, and generate a noticeable volume expansion—creating a clear, short‑term entry window for traders with a moderate risk tolerance.