Technical analyst Clive Maund discusses a drone stock that begins trading today.
The drone sector is hot and this morning a new drone stock starts trading on the CSE (Canadian Securities Exchange). It will be named Draganfly Inc. (DFLY:CSE) and will trade under the symbol DFLY. It is expected to do well. Cameron Chell, Chairman and CEO stated, "We are honored and excited to have been granted conditional listing status and look forward to the commencement of trading on Tuesday November 5th. Draganfly is the world’s oldest operating drone company and one of the early developers of the quadcopter. Draganfly today remains a leading drone solutions innovator and with the definitive government and industry shift to utilize North American unmanned vehicle systems and software, Draganfly is in the right place at the right time to establish itself as the cornerstone North American industry player."
Details of the listing and about the new company may be read here, and a very important point made is that the company has just completed a C$7 million fundraising exercise, which means that it is in a strong working capital position to exercise its business plan.
A strong driver for the stock is the fact that, with security concerns mounting in the West about Chinese made drones, demand for those made in the U.S. is likely to receive a big boost, which will obviously benefit companies like Draganfly.
An interesting video about Draganfly and its products may be watched by clicking this link.
While action in the stock may be unpredictable for a while following the start of trading, a likely scenario is thought to be an initial spike followed by a reaction on profit taking, then a period of erratic fluctuations before a base pattern leads to a bull market. This is certainly a stock worth considering given the positive outlook for the sector and for U.S. drone stocks in particular.
One tactic for anyone thinking of buying at the open will be to jam in a close stop immediately after buying, so that if it should then drop you get taken out for a minor loss. If it should spike up in the morning it may be worth taking profits with a view to laying in wait with the aim of buying it back again after a reaction.
Dragonfly website.
Dragonfly Inc., DFLY on CSE, set to start trading Nov. 5 at the open, and expected to start trading in about a month on the U.S. OTC market.
Originally posted on CliveMaund.com at 11.47 pm EST on 4th November 2019.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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Charts provided by the author.
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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. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. 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 can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.