Kratos Defense and Security (KTOS) shares are developing a strong bull flag pattern at the top of the recent range as buyers support on dips to the rising 8 EMA this past month showing great relative strength. KTOS reported earnings last week and beat estimates but guided lower and the stock still holding up well above 17.00 support. They also were awarded $579 million U.S. Air Force contract. The small cap industrial name has a clear path towards the 20-level overhead as a good target on a breakout which lines up with the 2022 value area high and has some February $20 short calls in OI from opening sales recently so a likely ceiling short term.