Monday 20 March 2017

Technical Analysis: Kratos Defence & Security Solutions Inc.



An easily spotted resistance of $9.20 marks a pivotal area that'll influence price direction in the coming years as both the bulls and bears battle for supremacy. 

It should be noted that price has managed to assemble a strong series' of higher highs and higher lows over the intermediate period which has brightened the chances of a breakout occurring. 

The sellers were prepared for buyers oncoming at $9.20 and managed to hold the fort well however the performance of the previous week's candle might be a forewarning to sellers that a fresh attack on the level could be underway. 

There's a sharp rise in gradient in the short term uptrend which gives a good indication that the bulls need to sustain these movements to prevent the trend from losing momentum, so there's sure to be a fight. 

The stochastic indicator is currently in the oversold region having been in a similar position on two other occasions. 

A flush below the double top formation hinted at downward pressure to become dominant but if it were to move above the 45 level the could be a quick resurgence of buying.      

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