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 of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More
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