Orbital Sciences - ORB - cls: 9.63 chng: +0.00 - stop: 9.24*new*
Every week or so since the ORB play has been open, ORB has announced a new government contract, and it did so again Thursday. That contract involves an $11 million order for a Minotaur space launch vehicle from the U.S. Air Force.
Instead of responding positively to the news, ORB traded sideways, printing first a small-bodied candle on Thursday and then a doji on Friday. RSI flattens, too, while ORB consolidates. While the DFI, the Amex Defense Index, rose, we note that other defense-related stocks such as BA printed doji, too.
ORB's pattern appears to be a bull-flag pattern building inside the ascending regression channel. We note that ORB often prints doji or small-bodied candles during similar consolidation patterns, and that volume often drops off appropriately during those consolidation periods. As long as volume continues to expand on the breakouts, the pattern continues to be bullish.
The 10-dma and 21-dma's now converge just under $9.50, with the 30-dma again snaking along the lower support line of the rising regression channel. ORB will hit the bottom of that rising trendline near $9.40. We've raised our stop to $9.24, just under the rising 30-dma. MACD lines now converge, with those lines close to another bullish cross. New entries could be sought on a pullback and bounce from above $9.50, but we're beginning to be concerned about the series of lower highs ORB may be printing. Traders who prefer to enter on momentum might now wait for a push above $10.00, confirming that volume expands with the push.
Annotated Chart for ORB:
Picked on Sep 3 at $9.18
Change since picked: +0.45
Earnings Date: 07/22/03 (confirmed)
Average Daily Volume: 347 thousand
Link to Current Quote ORB