Expert Says Drone Stock Destined to Head Much Higher
Contributed Opinion

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Red Cat Holdings Inc.
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Clivemaund.com Disclosures

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.

We took a good profit in drone stock Red Cat Holdings Inc. (RCAT:NASDAQ) towards the end of November.

However, we sold too early as it continued even higher for a while before reacting back, as we can see on its latest 3-month chart below.

The reaction brought it back on declining volume to the vicinity of its 50-day moving average, where it was again a buy, and on Friday, it broke higher on a marked pickup in volume, which is bullish.

So yesterday's news that Red Cat partnered with Palantir to equip Black Widow™ with autonomous visual navigation and warp speed for GPS-compromised environments is viewed as a very timely and important development that looks set to broaden the market for the company's products substantially, and with this news, the stock looks destined to head much higher. The stock is already up significantly in the pre-trade.

Even though Red Cat is at a historically high price, it is viewed as a buy again here as a momentum play, and for safety, a stop can be placed just beneath Thursday's intraday low.

Red Cat's website

Red Cat Holdings Inc. (RCAT:NASDAQ) closed for trading at US$10.45 on December 16, 2024.