RAC - Charts & Price Action, page-16718

I agree with the many others who already commented that RAC TA is showing many positive signals.
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My simple analysis:

- Since the Dr T bombshell, sp was in freefall. My assumption is that this was due to 1) The Dr T effect and 2) stop loses being hit (selling begets selling), until we hit maximum pain where all who wanted to get out due to Dr T and stop losses are now out.

- I believe the recent “bottom” at $1.13 is a point of strength. Where all the weak impatient holders are now “out”, and the remaining holders are stronger, able to withstand the freefall. It's all upside from here.

- We now see green shoots with a price breakout from the 50-day moving average together with a breakout from the 20-day Price Chanel.

- Approaching sp area where nearly 1m shares were dump on one day due to the Dr T resignation bombshell.

- I believe not all sellers who got out since the Dr T bombshell have walked away completely from the RAC story. Yes, a portion would have sold out and never to return, however, I believe a good proportion are on the sidelines, waiting for a re-entry after confirmation that Dr T’s resignation is not terminal for RAC as a biotech and the RAC sp. Afterall Dr T is still the largest shareholder and Dr T is still commenting on social media. He mentioned that he is “looking forward” to the upcoming strategy update and had positive comments on the newly appointed CMO and NED. He is “confident … that we will see a lot of exciting science (and more)” come out of the COH collaboration. He also mentioned multiple times that he is looking after the best interest of shareholders. Hence the Dr T effect is still very much intact, but somewhat diluted in the eyes of some. Others believe that having Dr T just an outside investor is a better scenario to have because he now 100% aligned with the interest of outside investors.

- There are also those who sold earlier, hoping to buy back cheaper. Some were targeting a re-entry sub $1. When the sp was in freefall and approaching $1.10, this was a valid “trade” to make. However, in hindsight it is now unlikely to pan out. If they haven’t already bought back, they are now scrambling to re-enter in the mid $1's.

- The recent PS announcements (3 just this week) together with the recovering sp, may just be the “proof” for those on the sidelines to put some/some more money to work on RAC. Buying begets buying.

- We may also have many more eyeballs on RAC due to the recent COH announcement. More people globally are aware of COH than RAC.

- Key sp inflection points to watch are: 1) 200 day moving average (approx. $1.95) and 2) $2 where sp was before the Dr T announcement. All this happening around $2 and $2 being a nice round number will be the next resistance/support level for confirmation of ‘escape velocity’ for the sp.

- I believe the sp dump due to the Dr T bombshell was an overreaction that will soon be unwound completely.