Droneshield $DRO (-3,02%) is trading within a clear upward channel consistent with excellent upward momentum since early May. After a clear move higher, the stock has now consolidated at the upper end of the channel, potentially forming a bull flag or sideways range around the $2.43 to $2.86 area. The consolidation could be a good relief before the stock makes new highs, provided the support around $2.43 holds.
The volume profile shows strong buying interest on the charts at $1.83-$1.87, and this would be the main support in case of a future correction. The RSI is at 67, close to the overbought zone, suggesting that momentum is favorable but could temporarily turn lower.
With the price still within the higher channel and also holding a positive position above the primary support at $2.43, the technical bias remains on the upside with the breakout point still above $2.86. However, a clear breakout below $2.43 could point the way to a correction to $1.87.
