AeroVironment (AVAV)

We got a blog question on AeroVironment (AVAV).

AVAV looks bullish overall given a breakout above followed by a dip to retest the 236.60-224.00 area, which is solidified as support. In addition, AVAV is breaking out from a falling (aka bullish) wedge. These patterns support upside beyond the early July high of 295.90 toward the bullish breakout target at 346.

Dips that hold above or near the bullish wedge breakout zone at 257-254 keep the immediate pattern bullish.

A bullish breakout and retest pattern for AVAV relative to the S&P 500 corroborates and confirms the bullish absolute price breakout and retest pattern.

Chart 1: AeroVironment (AVAV)