Aerospace and Defense Sector ETF (XAR) Forms Bullish Posture

Military, defense, and aerospace stocks have seen an influx of buyers lately.

In fact, the Aerospace and Defense sector ETF (XAR) is up over 25 percent since October.

And its recent price pattern could send XAR higher yet.

This one is bitter sweet because the current geopolitical climate and conflicts around the world. Clearly, investors are betting on the United States and other countries upping their spending on military needs. Sigh… in any event, I have been bullish on defense stocks and think this pattern should be on your radar.

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Note that the following MarketSmith charts are built with Investors Business Daily’s product suite.

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$XAR Aerospace and Defense Sector Chart

As you can see, XAR rallied out of an October low (and nice base) nearly 25 percent. And the first two months of this year has seen XAR form a cup and handle (or one could argue that it is a large handle itself).

Either way, it is a bullish setup that would be triggered by a breakout to new highs.

xar aerospace and defense sector etf trading pattern chart february

Twitter: @andrewnyquist

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.