“I was considering adding Red Cat Holdings to the list of stocks posted before the open this morning, but held off because I figured it would react back within the current consolidation pattern – it has, dropping 25% on the day at the time of writing.
Red Cat is a drone stock that we have looked at on and off for a while, but it didn’t do much, then last month it took off like a rocket, breaking out from a fine Cup & Handle base on huge volume. The current reactive pattern from its December peak looks like a bull Flag / Pennant and once complete should lead to another upleg that should be big. Today’s heavy reaction has brought it back close to support at the bottom of the pattern, where it is rated a strong buy.
We will look at its chart later today. In the meantime, if you are interested, you should try to buy it before the close.
Red Cat Holdings, RCAT on OTC, trading at $2.10 at 2.58 pm EST.
Posted at 3.30 pm EST on 7th January 21.”
So here’s the 3-month chart for when we bought, and it may have been your buying that drove it back up to $2.75 by the close…
Posted at 7.40 pm EST on 7th January 21.