It looks to me like we could have an inverse head and shoulders...

It looks to me like we could have an inverse head and shoulders bottom forming on the daily chart. The break down into the 60 cents range from 75-80 cents may have been a bear trap as price has rebounded strongly and found support again at the 75-80 cents level. That 75-80 cents level also served as support during the initial run-up in September/October 2020, so it's good to see RAC holding here and hopefully build from these levels.

Longer term, another positive on the chart is that RAC has been consolidating for almost 7 months in a range of ~$0.70 - $1.10, and potentially forming a strong base for a more powerful move (one way or the other). Whilst RAC unfortunately hasn't seen an improving share price since October as many other biotechs have, this extended and sometimes painful consolidation could prove to be an advantage in the long run for this reason. Whilst we have the dreaded tax loss and JC selling as potential negatives, the fundamental positives around upcoming RC220 delivery, toxicology studies, and cardio-protection trial commencement (and maybe a surprise or two) may hopefully be enough to swing things in our favour and give us a breakout in the positive direction.

H&S patterns aren't the most reliable, but they are more reliable after a strong down trend, and we've certainly had one of those! RAC closed right on the neck line today. The distance from the bottom of the head to the neck line is about 24 cents, so if RAC can break out tomorrow above the neck line at 85 cents, it would give a short term price target of about $1.09. This lines up nicely with resistance at that level from September and November last year, and I'd expect to see some selling there again, in the short term at least. Fingers crossed!