Why Bulls Should be Confident in this Defense Stock's Rebound

Core Viewpoint - Kratos Defense and Security Solutions Inc (NASDAQ:KTOS) is experiencing a decline, with a 0.7% drop to $26.97, moving away from its recent high of$35.66, but a potential short-term bounce is indicated by bullish signals on the charts [1] Group 1 - The stock has pulled back to its ascending 128-day moving average, being within 0.75 of the trendline's average true range for the first time in at least eight of the past ten trading days [2] - KTOS has shown five similar bullish signals in the past three years, with the stock rising 100% of the time one month later, averaging a 13.6% increase [3] - The current 14-day relative strength index (RSI) of 20.5 indicates that the stock is in "oversold" territory, suggesting a potential short-term bounce [4] Group 2 - Despite a 19.3% decline since the start of the month, KTOS shares have a year-over-year gain of approximately 30% [4]