Shortâterm outlook
The Q2â2025 release was essentially a âstatusâquoâ event â Sonendo posted results that met expectations and simply reconfirmed its existing guidance. In a market that rewards surprise, the lack of any upside or downside surprise will likely keep the stock flat to the downside of the prior dayâs close as traders digest the news. With a modest sentiment score of 30 (neutralâtoâslightly positive) and no major earnings beat, the immediate reaction will be driven more by technical dynamics than fundamentals. Expect the price to hover near the current supportâresistance zone (ââŻ$1.20â$1.25) with a possible shortâcovering bounce if the volume on the release is light; however, any break below the $1.20 level could trigger a brief corrective move as riskâaverse participants trim exposure.
Mediumâterm outlook
Reaffirming guidance signals managementâs confidence that the business model and pipeline remain on track, which is a positive signal for the mediumâterm (3â6âŻmonths). Assuming the company continues to deliver on its growth targets and there are no macroâdriven headwinds, the stock should be able to trade on the upside of the reaffirmed guidance. From a fundamentals perspective, the steadyâstate earnings and cashâflow outlook supports a valuation uplift, especially if the broader dentalâtechnology sector remains in a bullish rotation. Technically, the stock is still in an upâtrend on the weekly chart, with the 20âweek moving average around $1.30 and the 50âweek average near $1.35. If the price can sustain above the $1.30 weekly support and break the $1.35 resistance, a mediumâterm rally toward $1.45â$1.50 is plausible. Conversely, failure to hold the $1.30 level could open a longerâterm downtrend.
Trading implication
- Shortâterm: Stay flat or consider a tightâârange scalp around $1.20â$1.25; avoid large directional bets until a clear technical break occurs.
- Mediumâterm: Look for a breakout above $1.30 on weekly volume to go long with a target of $1.45â$1.50; set a stop just below $1.30 to protect against a trend reversal.