Defense Stock Due for a Rebound After Falling From Highs

Group 1 - Red Cat Holdings Inc (NASDAQ:RCAT) has experienced a decline from its record high of $16.70 on October 9, currently trading at $8.79, indicating a 4% drop [1] - The stock has remained above its 260-day moving average 80% of the time over the last two weeks and 42 trading sessions, suggesting a potential for a short-term bounce [2] - Historical data shows that similar signals have led to a 100% success rate in stock price increases one month later, with an average gain of 29.7% [2] Group 2 - Short interest in RCAT is significant, representing 17.2% of the stock's available float, which equates to nearly two days of buying power [4] - The Schaeffer's Volatility Scorecard (SVS) for Red Cat stock is at 15 out of 100, indicating that the stock has consistently shown lower volatility than what its options have priced in [4]