One of our passions is to look for the next tenbagger, which, mostly, is to be found in the tech space.
A company we are following for a while is Energous Corp, symbol WATT, trading on the Nasdaq. Recently, the stock has seen a large inflow of funds given speculation that its technology would be offered on the new iPhone 7 devices. However, as the new iPhone was announced, it appeared there was no wireless charging technology from Energous Corp. The stock sold off, some 30% in a matter of days.
As the hot air is out of the stock, it seems smart investors are seeing this as a buying opportunity. WATT rallied 7% today on big volume. There MUST be a reason the stock is getting a bid, after it sold off. This smells like institutional buying kicking in (again), which is a great sign.
The chart pattern outlined below proves that the breakout is still for real, until proven otherwise. Volume is supporting that thesis. As said before, and annotated on the chart, if this company can run break-even in a year from now, we will see investors anticipating on that leading to a huge runup in the coming months.
