From Ukraine to the Middle East, global conflicts have been a tailwind for Defense stocks.
But sometimes things get priced in (price discovery).
Case in point: The Aerospace & Defense Sector ETF (XAR). Following a top in August, XAR was in decline for over 2 months before reaching a low (unsure how durable) last Friday.
It is now in rally mode, up nearly 5% today in early trading. But if this rally is to continue, it will need to hurdle 50-day moving average resistance (doable), followed by strong dual resistance at its 200-day moving average and breakdown zone ($250-$255).
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$XAR Aerospace & Defense Sector ETF Chart
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.
