Elsight Ltd (ASX: ELS) shares are on fire again today, pushing to a fresh all-time high as investors continue to pile into this momentum stock.
In afternoon trade, the Elsight share price is up 8% to $6.75, after touching an intraday peak of $6.76. That move marks a new record high and leaves the stock up roughly 1,800% over the past 12 months.
The latest gain extends one of the ASX's strongest defence tech moves. Investors continue to reward the company's expanding role in global unmanned systems connectivity.
Here's what is driving the momentum.
Image source: Getty Images
Drone contract wins keep the momentum building
One of the key drivers behind Elsight's strong run this year has been contract momentum across its defence-linked drone programs.
Its Halo connectivity platform is being adopted more broadly for beyond visual line of sight drone missions. Reliable multi-link communication remains critical across military, public safety, and commercial use cases.
Recent updates have pointed to new orders from the US, while Bell Potter previously described 2026 as potentially a "year of the drone" for Elsight as defence departments increase investment in autonomous systems.
The market also seems to be recognising the company's stronger financial performance.
Elsight's recent results showed record revenue, a growing installed base, and a larger pool of recurring software-style revenue, which is giving investors more confidence in future growth.
What the chart is saying now
The chart setup remains very positive.
The stock is trading well above both its short and long-term moving averages, which points to strong bullish momentum.
In addition, the relative strength index (RSI) is sitting near 70, placing the stock close to overbought territory but not yet at an extreme level.
Momentum indicators such as MACD remain supportive after the move to fresh highs.
The previous resistance zone around $6.25 now looks like the first key support level after today's breakout.
Below that, the $5.80 to $6.00 region may act as a secondary support band, which aligns with recent consolidation levels.
With the stock at new highs and no historical resistance above, momentum buyers may remain interested in the current market environment.
Foolish Takeaway
Elsight is now one of the ASX's standout defence tech stocks, with its market capitalisation pushing to around $1.25 billion.
The combination of strong contract wins, growing defence exposure, and a technically strong breakout is keeping the stock in focus.
After a 1,800% run in a year, the pace of gains is clearly extraordinary. But for now, the upward trend looks well supported.
