AeroVironment, Inc. (NASDAQ:AVAV)

Q: Hey Chip,

Where to you see AVAV leveling out at?
I bought it at 22.00 3 months ago.

With Regards, Josh

A: Great buy!  We issued an Uptrend on 5/7/09 at $26 so good work on timing the low.  The stock is above its major moving averages and the 200-day has actually started to tick up.  All good signs.  If the 50-day moving average can cross above the 200-day, that would be even better.  First resistance will be if it can get above its most recent top of $32.90 where it hit on July 1.  After that I don’t see any resistance until the $35 area.  In terms of support levels, the 30-day and 50-day should provide some support at $28.91 and $28.18, respectively.  So that is the downside support.