Don't Ignore This Chart!

Looking For A Bottoming Reverse Head & Shoulder Breakout

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Kratos Defense & Security Solutions (KTOS) has been in a steady uptrend for the past 15 months and its SCTR (StockCharts Technical Rank) has risen back above 70, suggesting that KTOS is becoming more attractive relative to its peers.  It does still have plenty of technical work to do as you can see below:


KTOS has not been a great investment long-term, but technical conditions have definitely improved and volume has been very heavy during the 2017 rise, a sign of accumulation.  A breakout above neckline resistance close to 9.50 would be very bullish - especially if heavy volume accompanies the breakout.  To the downside, the rising trendline is approaching 7.00 and 2017 price lows are near that level as well.  The closer that KTOS gets to that level, the better the reward to risk for entry becomes.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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