This Beaten-Down Tech Stock May Be Poised For A Huge Recovery

Sonos, Inc. (SONO) is a $1.46 billion consumer electronics company, headquartered in Santa Barbara, CA.

It's been downtrending this year since peaking in March 2024. Over the past few months, SONO has made a move higher to challenge overhead gap resistance, but it's been unable to break through (red arrow). Its AD line, though, is powering to new highs, despite a lackluster price chart (bottom panel):

Enter Sonos, Inc. (SONO):

The downtrend remains intact and SONO has not been able to sustain a move through the PPO centerline (blue circle). It's sideways consolidation hasn't ended, however, as SONO's RSI now is stuck between 40 and 60 (black arrows), a confirming signal. SONO has been an underachiever, for sure, but a potential relative strength double bottom (green arrows).

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.