Back on May 18 I recommended the long side of AeroVironment Inc. (AVAV) , writing "Aggressive traders could probe the long side of AVAV below $80 if available, risking to $72. Our target for now is $100." The drone maker is set to report its fiscal fourth-quarter results after the close of trading here on Tuesday, so let's check out the latest charts and indicators for AeroVironment.
In this daily bar chart of AVAV, below, we can see that prices rallied close to our $100 price target and has since pulled back to the 200-day moving average line and our recommendation for a sell top at $80. AVAV is below the declining 50-day moving average line. The daily On-Balance-Volume (OBV) line has remained steady the past seven weeks. The Moving Average Convergence Divergence (MACD) oscillator is only slightly below the zero line and just short of a new outright buy signal.
In this weekly Japanese candlestick chart of AVAV, below, we can see some recent lower shadows around $80 as traders reject the lows. The weekly OBV line looks more positive than the daily line and suggests we could see further gains ahead. The MACD oscillator is above the zero line here.
In this daily Point and Figure chart of AVAV, below, we can see an upside price target in the $96 area.
In this weekly Point and Figure chart of AVAV, below, we can see a price target in the $146 area.
Bottom line strategy: I have no knowledge of what AVAV is going to tell shareholders and sell side analysts tonight, but the charts and indicators suggest higher prices in the weeks ahead.
