Energous Corporation (WATT) shares soared more than 60% on Thursday after the company received its first Federal Communications Commission (FCC) approval for a commercial product. Delight's WattUp-enabled personal sound amplification products use Energous technology to provide a more cost-effective hearing loss solution than hearing aids. The WattUp wireless tech enables the device to charge on a charging pad rather than being plugged into the wall.

Energous shares have experienced a significant downtrend over the past year. In December, the company was the subject of a bearish Citron Research tweet saying that Energous has a "history of deception" and that its technology wasn't ready for prime time. Investors had hoped that the company could become an Apple Inc. (AAPL) supplier for wireless charging technology, but those hopes were squashed when the tech giant went with competing Qi standards.

Technical chart showing the share price performance of Energous Corporation (WATT)
StockCharts.com

From a technical standpoint, Energous stock broke down to trendline and S2 support at around $5.93 earlier this month before rebounding back into the price channel during Thursday's session. The relative strength index (RSI) bounced back to neutral conditions with a reading of 54.23, while the moving average convergence divergence (MACD) could see a bullish crossover in the near term.

Traders should watch for some consolidation within the price channel with an upper limit of around $8.00 and a lower limit of around $6.00. If the stock breaks out from these levels, traders could see a move to reaction highs and R1 resistance at around $9.78. If the stock breaks down from these levels, it could retest its lows of around $4.41 before moving higher again.

The author holds no position in the stock(s) mentioned except through passively managed index funds.