TAKOF Stock: Drone Delivery Stock Is Setting Up to Take Flight

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TAKOF Stock: The Future Is Now

As a kid, I remembered watching a cartoon called The Jetsons. This cartoon was a take on a future when robots were maids, 3D printing devices made food, and vehicles could fly. I was under the age of 10 at the time, and those images seemed like a far-off fantasy that only served to stoke my childish imagination.

Today, decades later, those images I saw on the television screen seem like a reasonable vision of what our future may look like. Robots do exist, and they are already doing household chores. 3D printing machines also exist and, guess what, they can make food. So what’s left? Flying vehicles. Yup, we have those as well, and we call them drones.

The reason I’m bringing this up is that technology is improving fast enough that we are now making things reality that previously seemed unimaginable.

Take a company like Drone Delivery Canada Corp (OTCMKTS:TAKOF, CVE:FLT). It is in the business of designing, developing, and implementing a drone-based delivery system—not only in Canada as the name suggests, but in the U.S. as well.

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The drones are not in commercial use yet, but investors are not shying away from Drone Delivery stock.

TAKOF stock was able to brush aside the turbulent conditions that plagued the stock market in October and tacked on a gain of 17.2% that month. This was a significant sign of strength, which is why I have to believe that this run may be the beginning of a larger move to the upside.

It’s not only this move that is stoking my bullish optimism for Drone Delivery Canada. The technical backdrop for this stock is suggesting that further gains are possible. For instance, a very influential momentum indicator has just swung into bullish alignment and is supporting the notion that further gains are likely.

The momentum indicator I am referring to is captured on the following chart.

Chart courtesy of StockCharts.com

This stock chart highlights the moving average convergence/divergence (MACD). This indicator is used to determine whether bullish or bearish momentum is influencing the price action in a stock.

It is important to determine whether bullish or bearish momentum is influencing the price action in a stock, because a directional move cannot be sustained unless the applicable level of momentum is supporting it.

In general, this is why sustained moves toward higher prices have occurred while the MACD indicator has been in bullish alignment, and corrections have occurred while this indicator has been in bearish alignment.

The signal lines that create the MACD signal swung into bullish alignment in the last week of October. This indicator is suggesting that bullish momentum is influencing the price action in TAKOF stock. Therefore, higher prices can be expected to follow.

This notion that Drone Delivery stock is now geared toward higher prices is pertinent because the stock has been making lower lows and lower highs since the stock peaked in February. The price action I described is the defining characteristic of a bearish trend.

In order to negate this bearish trend, a higher high is required. The good news is that this stock is on the cusp of creating a higher high. All it needs to do is make a high above $1.94.

Once this is accomplished, the combination of the bullish MACD and the higher high would suggest that a new bullish trend toward higher stock prices has begun.

The all-time high resides at $2.26, which is the next level that would need to be breached if Drone Delivery stock is set on a course toward higher prices. If and when this event occurs, the potential upside that follows will be exponential.

That’s because this is the last level of price resistance that can contain the stock price from advancing. Once TAKOF stock breaks above it, there will be nothing to stop it from advancing, and the sky will become the limit.

Analyst Take

Drone Delivery stock has generated a technical signal suggesting that the stock  is now geared toward higher prices.

But one signal is never enough. Therefore, in order to confirm that higher prices are on the horizon and that a bullish trend has begun, TAKOF stock needs to break above $1.94.