Wealth Within Hot Stocks: Three ASX defence stocks set for a major breakout

With U.S.-Iran peace negotiations collapsing and fresh military strikes escalating, Wealth Within analysts Filip Tortevski and Pedro Banales believe several ASX defence stocks could be preparing for another major move higher.

Hear from all the ASX-listed companies that were at the RIU Resources Round-Up in Sydney, right here on HotCopper.com. Over a dozen interviews.

The Wealth Within pair highlighted DroneShield (ASX:DRO) as one of the strongest long-term opportunities due to rising global drone warfare and NATO defence spending. The company recently delivered record quarterly cash receipts and continues building a large military contract pipeline.

Technically, the analysts said the stock is consolidating between roughly $3 and $4.70 after a huge rally since 2023. They believe a breakout above the key $4.65 to $4.70 resistance zone could trigger another run toward new all-time highs.

Also in the video: Austal (ASX:ASB) was described as a major beneficiary of increasing naval defence spending tied to AUKUS and the U.S. Navy. After a sharp correction from recent highs, the analysts believe the stock is approaching strong support around $3.80, where institutional buying could return.

Service Stream (ASX:SSM) was highlighted as a lower-volatility defence play following a major long-term contract to contribute ~$240M annually from FY27, with the stock now approaching a potential breakout level near $2.30.

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