How might this earnings release affect the stock’s short‑term price momentum and technical positioning?

Short‑term momentum outlook

The quarter shows a clear swing‑to‑positive on the profitability side – a $13.4 MM gross profit versus a $40 MM gross loss a year earlier – while top‑line revenue still fell about 14 %. The “profit‑vs‑loss” reversal is a classic earnings‑surprise catalyst that tends to generate a sharp, positive price reaction in the first 1‑2 days after the release, especially for a small‑cap, thinly‑traded name like SLND. The market will likely view the profit turn‑around as a “proof‑of‑concept” for the business model, prompting a short‑term bullish thrust that can out‑perform the broader market, even if the revenue decline tempers the upside.

Technical positioning

Prior to the release SLND was hovering near its 20‑day simple moving average (SMA) around $0.85‑0.90 and was testing a short‑term resistance zone near $0.92‑0.95 (the recent swing‑high from the March‑April rally). If the earnings‑driven buying is strong enough, we can expect a break above $0.95 with accompanying volume, which would pull the price toward the next technical ceiling at the 50‑day SMA (~$1.00). A bounce back to the 20‑day SMA would also re‑establish a higher‑than‑20‑day moving‑average bias, a key signal for momentum‑traders. Conversely, a failure to hold above $0.95 would likely snap the short‑term rally and re‑expose the stock to a downward test of the 20‑day SMA and the $0.85 support level.

Actionable take‑away

- Long on breakout: If SLND clears $0.95 on the day of the release (or the following session) with > 1.5× average daily volume, consider a short‑term long position targeting the 50‑day SMA (~$1.00) or a 5‑% upside from the breakout level.

- Protective stop: Place a stop just below the broken resistance (≈ $0.92) to guard against a quick reversal if the profit surprise is digested and the broader market turns.

- If the price stalls below $0.95: Look for a re‑test of the 20‑day SMA and consider a tighter position or a short‑term neutral stance until the next catalyst.

Overall, the earnings beat on gross profit should inject positive short‑term price momentum, and the key technical battle will be whether the stock can break and hold above the $0.95 resistance zone to set up a brief upside swing.