Technology Changing Aviation
Technology is one of the greatest factors in changing an industry. Around the world technology advancements have reshaped the manner which humans perform essentially every task.
As we continue to develop and implement new technologies we are able to perform missions that were once never possible.
Companies in the aviation industry have been testing the abilities of creating aircraft that can be operated without a pilot in the cockpit. The military has been using these systems for years and they have recently been introduced into the commercial industry.
There has been a large amount of hobbyist whom have found enjoyment in owning and operating their own personal drones. These can be used for simple missions such as recording video with closer range to the controller.
Larger more advanced drones are being tested around the world for operations such as flying for extended periods of time in certain atmospheric conditions for research purposes or surveillance.
Commercial drones have been shown to have incredible potential for even purposes such as overseeing construction sites or taking close up photos from above.
Uber is testing the concept of not just developing self driving automobiles but also self flying aircraft. These would be used for short distances.
They would be designed for close range flying of a range of 20 miles to potentially 250 miles depending on the final specifications. The service would be simple and easy to use just as it is to request a ride on your app today.
The aircraft will initially be manually driven with pilots in the cockpits along with the passengers to ensure that the safety of those flying is at the highest priority. Then over time as they systems and software develops then the aircraft can fly on its own allowing for another guest to now join.
The application of being able to use aircraft without the limitation of crew duty days opens businesses to be able to maximize the usage of their aircraft. As aircraft only generate income as they are flying and this will help create more opportunities for flight to occur.
When we look at the Price of Uber from the Technical perspective we see how price is currently at a major low which potentially could attract large institutions and money managers. Following where larger banks place their trades is a key part of watching the market.
This will help you gain a better idea of where the large funds are entering their positions by the volume of orders increase. We can see this based on the bar graph on the bottom side of the chart which shows the total order for the day.
Depending on if there are more buy orders or sell orders the colors change. Red showing there are more sell orders in the market and green showing there is larger amount of buy orders than sell orders.
AeroVironment is one of the leaders in the industry towards creating drones that are used by governments or private organizations for specialized missions.
They have created a project working with the University of Alaska in developing one of the first solar powered aircraft.
AeroVironment has recently shown incredible growth as they have continued to not only create new products which appeal to a wide arrange of consumer but also had success in being able to secure revenue.
They have been recently awarded a $12 million contract to support a major middle east ally. Their technology can aid the defense systems by developing drones that are capable of carrying a payload and operating in adverse conditions.
When we look at the chart for AVAV we notice that over the last few months there has been a fast paced 30% gain for the stock. Price has been in a strong down trend from the last year and came down to make a double bottom.
When we look at the double bottom we notice that the second low is slightly higher than the first low. This is going to be a key bullish indicator that the stock is gaining strength and looking to make higher highs and higher lows.
As price continues to push higher we are nearing closer to the next resistance level in the up-trending channel. Waiting for a strong confirmation of breaking and retesting above your resistance line would be a clear cut entry on a buy.
You would then be able to hold the position a range of about 4-7% upwards before securing profits.
The idea is to be able to make your gains and secure them. Understanding the time frame of the trade you are entering is vital before clicking the order submit.
Often we underestimate the length of time that is required for our desired move to play out. Make sure you define a clear exit plan just as well as you determine your entry point.
Should the resistance level hold strong then price would push down towards the previous resistance. Although based on the recent news made of the awarded contract there is going to be a fundamental bias towards the upside following the news.