Schaeffer’s Investment Research – News & Analysis

Bull Signal Flashing on Struggling Aerospace Stock

Red Cat Holdings (NASDAQ: RCAT) has retreated about 8% from its January 22 peak, settling near $12.39. The stock sits within 0.75 of its 50‑day moving average’s 20‑day ATR, a bullish signal that historically preceded a 5.9% average gain after one month. Short interest has dropped 11.8%, leaving roughly 19.8% of the float shorted. Additionally, the put/call volume ratio is in the 98th percentile, indicating unusually high bearish positioning that could unwind.