Global tensions in Eastern Europe and the Middle East have given the world reason for concern over a larger conflict.
And these concerns appear to be playing into the hands of Aerospace and Defense companies.
The sector ETF (XAR) has reversed higher with a strong move and appears poised for a breakout.
Today we highlight a longer-term “weekly” chart to show why this move may be a strong one.
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$XAR Aerospace & Defense Sector ETF “weekly” Chart
As you can see, XAR fell sharply into April before reversing higher and leaving a very bullish candlestick reversal pattern.
It is now testing its down-trend resistance line. BUT this doesn’t appear to be a major hurdle as momentum has crossed over to the upside. Stay tuned – this could be poised for more gains.
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.
