AVAV Tests Key Support 4.3% Will Bounce Come
$AeroVironment(AVAV)$
AeroVironment Inc. (AVAV) Drops -4.30%: Defense Drone Leader Faces Technical Pressure at $239, Support Test Critical
Latest Close Data
Current Price: $239.00 USD (EST close, Dec 15, 2025)
Change: -$10.75 (-4.30%)
Distance from 52W High: -42.8% below $417.86 peak
Trading Volume: 1.24M shares (0.63x average)
Core Market Drivers
Defense sector rotation and profit-taking pressures weighed on AVAV following recent gains.
Reduced volume at 0.63x normal suggests institutional caution rather than panic selling.
Geopolitical tensions continue supporting long-term defense spending outlook, but near-term momentum has stalled.
Technical Analysis
Volume: 1.24M shares (63% below average) indicates light selling pressure
MACD: -18.54 (DIF) vs -17.39 (DEA) showing bearish divergence expansion
RSI (6-day): 24.80 - deeply oversold territory signaling potential bounce
RSI (12-day): 28.78 - approaching oversold threshold
Key Price Levels
Primary Support: $238.31 (critical level from Dec 12)
Strong Resistance: $281.31 (previous breakdown point)
Immediate Pivot: $250.00 psychological resistance
Valuation Perspective
Forward P/E: 68.28 (above historical avg of 58.20)
P/S Ratio TTM: 8.71x (premium to defense sector average ~4-6x)
P/B Ratio: 2.70x indicating moderate book value premium
Analyst Targets
15 Analysts Coverage: Average target $390.20 (range: $315-$450)
Ratings Distribution: 7 Strong Buy, 8 Buy, 1 Hold
Upside Potential: +63.4% to consensus target
Weekly Outlook
Expect consolidation between $235-$255 range as RSI oversold conditions suggest bounce potential.
Break below $238.31 support targets $220-225 zone. Recovery above $250 could retest $265-270 resistance cluster.
Risk Disclaimer
This analysis is for informational purposes only and does not constitute investment advice. Defense stocks carry sector-specific risks including government spending changes and geopolitical factors. Past performance does not guarantee future results.
For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.
🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now
Find out more here.
Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Other helpful links:
💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉
How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
