RADA June 29, 2020.
I was just looking at the chart of RADA this morning and what caught my eyes are the similar pattern it is exhibiting with ETSY. This is the "W" pattern which is a potent bullish move.
Our Calculated Target at that time was 8.54. And here is what happened with RADA.
It did not reach $8.54 It got stalled at $7.00 (Jan. 6, 2020) because it had been affected by the which started accelerating in China. It was still a very good gain from $4.86 even though it was not of a fundamental cause.
Together with the rest of the other stocks that had been affected by the Covid-19 pandemic, RADA went down to $2.05. Yet, that was the bottom that investors had been waiting for to enter. And that is when the "W" pattern started emerging. If this pattern stands well like ETSY, then we can really see this stock surging.
Remember that when it received new order of $9M last July 2019 it had a high of $3.63 which reached $7.00 after 6 months.
If it received the new order of $25M (way bigger than the $9M it received last year) between April and May of 2020, then add 6 months from April, then we could somehow more or less predict that around October maybe we can see that our target of $10.92 might possibly be reached. A possible gain of $4.85 which is very similar to 2019 gain of $4.86. If you want to test the water, do so. If you want to ride with the shoulders of the giants. Maybe, this time is the best time to do so. Mind you, this stock has all the potential to pump higher due to strong revenue and higher guidance for 2020.
RADA with "W" pattern (0, W, X1, Y, X2, Z)
Position (0) = High of 7 on Jan. 6, 2020
Position (W) = Low of 2.05 on Mar. 18, 20202
Position (X1) = High of 4.60 on Apr. 9, 2020
Position (Y) = Low of 3.87 on May 14, 2020
Position (X2) = High of 6.90 on Jun. 19, 2020
Position (Z) = Low of 5.97 on Jun. 24, 2020
As you can see from the lowest dip on March 18, 2020 to a low of 2.05, all the lows have been trending upward (W, Y, Z).
There is just a little issue with the High because (X2) = 6.85 high had not broken the (0) = 7.00 High. But the pattern is there. See if you can compare this pattern to ETSY which is really like a complete replica.
Here is ETSY's move on March 4, 2020 to Apr. 23, 2020.
Position (0) = High of 63.15 on Mar. 4, 2020
Position (W) = Low of 29.95 on Mar. 23, 20202
Position (X1) = High of 43.98 on Mar. 25, 2020
Position (Y) = Low of 33.96 on Apr. 2, 2020
Position (X2) = High of 66.25 on Apr. 20, 2020
Position (Z) = Low of 61.78 on Apr. 23, 2020
From the Low (W) of 29.95, all lows had been trending upward (W, Y, Z)
Previous High at (0) of 63.15 had been broken to a new high (X2) at 66.25. From this move see how it continued to trend higher.
The height (H1) = 36.07 ((X2) - (W)) had been replicated from (Z) to (X3) which we marked as H2
H2 = 36.07 ((X3) - (Z)).
If we have a move like this with a W Pattern on ETSY then we can also calculate the possible target move of RADA based on the (W) to (X2) height which we will call H1. If we use the same height starting from (Z) we can have a possible target of 11.01
2020/06/29
Entry Range: 6.50 to 7.00
Target: 10.92 based on ascent of W to X2
H1 = Height 1
H2 = Height 2
H1 = (W to X2) = 6.90 - 2.05 = 4.85
H2 = (Z to X3) = 11.01 - 6.16 = 4.85
How did we get the target X3?
X3 = Z + H1
X3 = 6.16 + 4.85 = 11.01
Now, this is just pure technical. If we look at the fundamental side. One of the catalyst that made RADA's move was the big order that were made between months of April and May 2020 for $23M.
August 29, 2019 I made a posting on Youtube concerning RADA
The above video will give you more a bit of in-depth coverage both technical and fundamentals of RADA based on its moved last Jul of 2019.
RADA was flagged twice from our Stockfetcher filter called “New 78 Day High Offset”.
Since August 13, 2018 when it broke out from its former high of $3.96 RADA made 15.75% as of August 21, 2019. The impressive gain made me evaluate why and would there be anymore momentum that we could ride with its move. See the chart last Aug. 29, 2020 with a high of 4.86.
Together with the rest of the other stocks that had been affected by the Covid-19 pandemic, RADA went down to $2.05. Yet, that was the bottom that investors had been waiting for to enter. And that is when the "W" pattern started emerging. If this pattern stands well like ETSY, then we can really see this stock surging.
Remember that when it received new order of $9M last July 2019 it had a high of $3.63 which reached $7.00 after 6 months.
If it received the new order of $25M (way bigger than the $9M it received last year) between April and May of 2020, then add 6 months from April, then we could somehow more or less predict that around October maybe we can see that our target of $10.92 might possibly be reached. A possible gain of $4.85 which is very similar to 2019 gain of $4.86. If you want to test the water, do so. If you want to ride with the shoulders of the giants. Maybe, this time is the best time to do so. Mind you, this stock has all the potential to pump higher due to strong revenue and higher guidance for 2020.
Revenue had just increased by 75%. Its got very strong balance sheet with a Net Cash of $30M and its guidance is projected at $70M for year 2020. Remember that Market Maker knows that it has all its drivers and therefore expect it to be propelling upward. The only way, it could shake the market to relinquish some of its share is to sting the retailers with fear that the stock would look like its going to fall down. Fear can get most of the retail traders to give up their shares and the Market Maker would be more than happy to buy them at a lower price. It is up to you to play like the Market Maker or the retail trader.
RADA August 12, 2020.
Here is the current chart of RADA as of August 12, 2020
And here is how it looks like in its 15minute chart after 12:00PM August 12, 2020
It tried hitting $8.00 mark but it got hit with resistance. It might probably do a retest at $7.00 or $6.75 before it is going to go higher.
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