Electro Optic Systems Holdings Ltd (ASX: EOS) shares are pushing higher again on Tuesday.
At the time of writing, the EOS share price is up 6.73% to $10.31. By comparison, the S&P/ASX 300 Index (ASX: XKO) is relatively flat at 8,759 points, 0.03% higher.
That adds to a huge 12 months for the ASX defence stock, which is now up around 260% over the past year.
There doesn't appear to be any new price-sensitive announcement driving the move today, although its recent contract win has helped lift the share price.
However, after a busy few weeks for the company, buyers are still showing plenty of interest.
Let's take a closer look at the chart and whether there could be more upside left.
Image source: Getty Images
Why investors are still buying
EOS has pushed back above $10 after holding around the $9.70 to $10 area in recent trading. That is likely the first support zone traders will be watching if the share price pulls back again.
The next resistance sits near today's high of $10.40. Beyond that, the bigger level to watch is the 52-week high of $12.58.
The relative strength index (RSI) is sitting around 55, which tells us the stock still has positive momentum without looking too stretched. That appears to be helping buyers stay comfortable after such a big 12-month move.
The wider view toward defence shares remains supportive too.
Investors have been paying closer attention to ASX defence companies, especially those linked to drones, counter-drone systems, surveillance, and high-energy weapons, as governments continue to lift defence spending.
Other names such as Droneshield Ltd (ASX: DRO) and Elsight Ltd (ASX: ELS) have also been getting attention.
That has helped keep EOS in the spotlight, particularly after its recent contract news and broker upgrades.
Can the rally keep going?
Brokers are still positive as well.
According to StockAnalysis, 4 analysts have a strong buy consensus rating on EOS, with an average price target of $14.04.
Bell Potter recently lifted its price target to $12.50, while Ord Minnett moved its target to $11.45.
That means brokers still see room for the stock to climb, even after such a huge 12-month run.
Of course, expectations are much higher now.
The next test is whether EOS can turn its recent contract momentum into revenue, stronger cash flow, and more signed orders.
If it can, the rally may still have a lot more behind it.
