Stock Price Prediction

Technical Analysis: Based on recent price action, DRS has formed a clear upward trend since January 2024, with the stock rising from $32.31 to current level of $34.46. The stock is currently trading near its Fibonacci resistance level of $36.01.

RSI(14) reading of 47.75 indicates the stock is in neutral territory, neither overbought nor oversold. The MACD indicator shows a positive value of 0.15, suggesting bullish momentum.

News Impact:

• Recent positive catalyst: Leonardo DRS secured a significant $99 million contract with U.S. Army for next-generation Mortar Fire Control Systems on January 13, 2025.
• Institutional activity: Recent filing shows $280,000 in lobbying efforts for Q4 2024, focusing on Department of Defense's FY2025 authorization.
• Pre-market performance: Stock showed strength with 4.6% gain in recent pre-market trading.

Price Prediction for Next Week: Based on technical and fundamental factors:

Target Prices:

• Resistance: $36.01 (Fibonacci R1)
• Support: $33.74 (Fibonacci S1)

Most likely scenario (60% probability):

• Price expected to test resistance at $36.01
• If breaks above with volume, could extend to $36.70 (Fibonacci R2)
• Entry point: Current price $34.46
• Stop loss: $33.74

Bearish scenario (30% probability):

• Failed breakout could see price retreat to support at $33.74
• Further downside limited by strong institutional support

Consolidation scenario (10% probability):

• Price remains range-bound between $33.74-$36.01

Trading Recommendation: BUY

• Entry: Current price $34.46
• Target: $36.01 (4.5% upside)
• Stop Loss: $33.74 (-2.1% downside)
• Risk/Reward ratio: 2.14

Key drivers for bullish outlook:

1. Strong government contract pipeline
2. Positive institutional activity
3. Technical momentum indicators showing strength
4. Clear support levels providing downside protection