DroneShield Ltd (ASX: DRO) shares are slipping again on Monday.
At the time of writing, the DroneShield share price is down 0.51% to $2.945 during mid-afternoon trade.
The ASX defence share has now fallen more than 56% from the record high of $6.71 reached in early October 2025.
However, DroneShield shares are still up around 74% over the past 12 months. Investors have backed rapid revenue growth and rising demand for counter-drone technology.
So, could the stock eventually make its way back above $6?
What does the chart say?
The first challenge is getting the share price back above $3.
DroneShield shares have repeatedly traded around this level over recent weeks, making it an important area for buyers and sellers.
The stock is also sitting below the middle of its 20-day Bollinger Band, which is around $3.02. The upper band is near $3.64, making that the next major resistance area if the shares begin climbing.
The 14-day relative strength index (RSI) is around 44. That puts the stock below the neutral level of 50, but it’s not yet in oversold territory.
On the downside, the lower Bollinger Band sits near $2.41. A fall towards that level would leave the share price with even more ground to recover.
Can DroneShield return to $6?
Reaching $6 would require the shares to more than double from today’s price.
That is possible, but the company will probably need more than a technical rebound.
DroneShield reported $216.5 million of revenue in 2025, up from $57.5 million a year earlier. It also entered 2026 with a growing international presence and continued demand from defence customers.
The company has since announced a US$24.9 million contract linked to the US Department of War. It had also secured $155 million of committed 2026 revenue by 20 April.
However, sentiment has been held back by an ASIC investigation covering company announcements and share trading during November 2025. DroneShield has said it will cooperate fully, but the uncertainty may continue to weigh on the stock.
Broker opinions are also divided. Recent price targets have ranged from $2.28 to $4.80, with even the most optimistic target still below $6.
What would need to happen?
A move above $3.60 would be an encouraging start, followed by a break through the $4 to $4.80 area.
From there, investors would need to see more major contract wins, and stronger profits to justify another push towards the record high.
DroneShield has already shown how quickly it can move when sentiment improves. But with the shares still trading below several resistance levels, $6 looks like a long-term target.
The post Can the DroneShield share price climb back to $6? appeared first on The Motley Fool Australia.
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More reading
- 3 ASX shares I’d buy that are not banks, miners, or supermarkets
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- ASX defence shares like Droneshield have soared since 2022. Is there any growth left?
- 3 reasons to buy DroneShield shares in June
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.