During Thursday's Lightning Round segment of Mad Money one caller quizzed Jim Cramer about Kratos Defense & Security (KTOS) . "This is a very good defense contractor," replied Cramer.
When we looked at KTOS on Sept. 23 we wrote that, "I would look at other stocks for long ideas as the charts of KTOS look vulnerable right now."
Let's check the charts again.
In the updated daily bar chart of KTOS, below, we can see that the shares did not weaken after our last review. Prices moved sideways until early this month when they climbed to a new high. Notice the number of rally failures at the $22 level. KTOS is now at a new high for the move up and above the rising 50-day and 200-day moving average lines.
The On-Balance-Volume (OBV) line shows a rise from late September and the Moving Average Convergence Divergence (MACD) oscillator is bullish now too.