Drone maker and defense contractor Kratos Defense & Security Solutions Inc. (KTOS) has received some attention from traders and investors recently as actions by and rhetoric out of Iran have heated up lately. Let's check out the charts and indicators as prices have already doubled in the past eight months for Kratos, which earned a mentioned here on Monday morning from Stephen Guilfoyle in his Market Recon column.
In this daily bar chart of KTOS, below, we can see prices have taken off on the upside in recent months. KTOS is above the rising 50-day moving average line as well as the bullish 200-day line. The 200-day moving average line was touched several times since late October and every test turned out to be a buying opportunity. The On-Balance-Volume (OBV) line has been rising for much of the past 12 months, telling us that buying of this stock have been more aggressive. The strength in the OBV line in the past three months helps to confirm the move up. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been in a take profits mode since early June.