Resonant Inc (RESN Stock) bottoming for higher

Resonant, like so many other stocks, has enjoyed a large rally off the March 2020 low.  However, this stock has already corrected that cycle, and may be ready to move higher.  Lets take a look at the company profile:

“Resonant (NASDAQ: RESN) is transforming the market for RF front-ends (RFFE) and disrupting the RFFE supply chain by enabling customers and partners to deliver 5G filters designed using its WaveX™ software tools platform. WaveX™ allows Resonant’s customers to capitalize on the company’s robust IP portfolio and extensive services offerings. In a market that is critically constrained by limited designers, tools, and capacity, Resonant addresses these critical problems by providing customers with ever-increasing design efficiency, reduced time to market, and lower unit costs. Customers leverage Resonant’s disruptive capabilities to design cutting-edge filters and modules, while capitalizing on the added stability of a diverse supply chain through the Resonant Foundry Program fabless ecosystem. Working with Resonant, customers enhance the connectivity of current mobile devices, while preparing for the demands of emerging 5G applications.”

Now that we know what the company is about,  lets dig into the charts!

Resonant Elliottwave view

Elliottwave view from the all time low set in December 2018.  From that low the stock rallied into a ((1)) which peaked in Feb 2019 @ 4.00.  After ((1)) peaked, the stock had a very lengthy wave ((2)) correction.  This correction took place as a double zig zag.  ((2)) found a low at $0.95 on March 12/2020.  From there the stock enjoyed an impulsive rally which peaked on Feb 9/2021 at $8.33.  After that, a sharp correction has taken place which has overlapped on the previous ((1)) wave.  This means the stock is taking shape as a leading diagonal structure within Red I degree.  ((4)) found a low at $2.35 on May 13/2020.

In Conclusion, as long as the ((4)) low at 2.35 remains intact, the favoured view is this stock will move higher in extension for one more high before correcting the cycle from the 2018 low.