Sound Group (SOGP) Plunge 15.15% to 2025 Low on Short-Selling Surge and Overbought Signals

Sound Group (SOGP) plunged 15.15% in intraday trading, hitting its lowest level since September 2025, with a sharp intraday drop of 24.74%. The selloff reflects mounting bearish momentum amid conflicting technical signals and heightened short-selling pressure.

Technical indicators highlight overbought conditions, with the 14-day RSI reaching 91.84 and the Stochastic Oscillator near overbought territory at 86.02. These readings, coupled with a Commodity Channel Index (CCI) of 295.61, suggest imminent correction risks. Meanwhile, the Williams %R at -0.7 signals proximity to the top of the trading range, reinforcing downward bias.

Short-selling activity has intensified, with the Short Sale Ratio rising to 30.09% as of September 2. This surge indicates aggressive bearish bets, though declining trading volume (-13.41M shares) points to waning buyer participation. The disconnect between short-term bullish momentum (e.g., 23.6% 10-day momentum gain) and dominant bearish signals (6 sell vs. 4 buy indicators) underscores market indecision.

Investor psychology plays a pivotal role, with overbought conditions historically preceding corrections. Recent volatility—marked by a 23.63% single-day gain followed by a steep reversal—has triggered profit-taking and cautious positioning. Without a strong fundamental catalyst, the stock remains vulnerable to further declines, particularly as key resistance levels ($28.40, $37.67) remain unbroken.