Swing Trading Plan
Holding Period
1-6 trading days
Expected figures are probability-weighted from our historical pattern database; Trade R:R is measured from the entry, target and stop levels.
Current Setup
Firefly Aerospace is trading a bull flag pattern following strong Q2 2026 earnings released August 11. Current price at $23.63 sits just below resistance at $28.20, with support anchored at $22.93. Structure score of 13.7/15 and breakout score of 13.0/13 indicate solid consolidation architecture. Volume ratio at 1.02x shows near-average participation during flag formation. The 74.49% win probability suggests this setup has favorable historical completion odds, though the conservative target of $24.41 represents modest near-term upside before a broader test of key resistance.
Stock Context
Firefly Aerospace announced Q2 2026 financial results for the period ended June 30, 2026, with record revenue of $117.7 million and a backlog of $1.5 billion reflecting strong demand across spacecraft, launch, and AI solutions. Full-year 2026 revenue guidance of $420-$450 million is supported by production ramp, contract wins, and strategic acquisitions, with 95% of the midpoint already booked. However, analyst Noah Poponak reiterated Hold after Q2 beat but maintains cautious view amid ongoing cash burn and unchanged 2026 outlook. Jefferies lowered price target to $35 from $52 on August 16. Mixed analyst sentiment and concerns about cash burn create headwinds despite strong topline growth.
What to Expect
Bull flag breakout above $28.20 resistance would signal continuation toward the measured move target of $24.41 (conservative calculation). Historical win probability of 74.49% indicates successful breakouts occur roughly 3-of-4 times. Volume confirmation is critical—breakout candle should exceed the 3.35M share average, sustaining momentum above resistance. Invalidation occurs on close below key support at $22.93, which would negate the bullish structure and signal breakdown into deeper consolidation. A failed flag leaves risk of retest toward the 52-week low.
Risk Factors
Elevated beta of 2.43 amplifies volatility in a neutral market regime with the Industrials sector in bearish territory (regime score -0.25). Insider activity shows 4 sales and zero purchases in the past 6 months, a red flag despite strong operational metrics. Recent 1-week and 3-month returns of -11.73% and -46.3% respectively show the stock has not participated in any near-term rally—the current setup may be capitulation rather than emerging strength. Analysts remain cautious on cash burn trajectory despite revenue beat. Stock trades 62% below 52-week highs, suggesting institutional uncertainty persists despite contract wins and backlog growth.
How We Find and Score This Setup
We scan more than 6,000 NYSE and NASDAQ stocks every trading day and compare each detected pattern against a database of 370,000+ historical detections. Every setup is scored across three dimensions: Structure, Volume, and Breakout Readiness. Win probability is a calibrated estimate of how similar historical setups performed over the following 10 trading days. This is a swing trading tool built for multi-day holds. It is not built or tested for day trading.
Frequently Asked Questions
Is FLY a good swing trade?
FLY scored 75 out of 98 on our bull flag scan, with a 74% historical win probability over a 1-6 trading days hold. Good setup based on our systematic scoring.
What is the entry, target, and stop loss for this setup?
The setup's reference price is $23.63, with a conservative target of $24.41 and a stop loss at $22.33.
What would invalidate this bull flag setup?
A close below the stop loss at $22.33 would invalidate the setup and suggest the pattern has failed.
How is the win probability calculated?
Win probability is a calibrated estimate of how similar historical bull flag setups performed over the following 10 trading days, drawn from a database of 370,000+ historical pattern detections across 6,000+ NYSE and NASDAQ stocks.
Market & Sector Regime
Market
Neutral
0.05
-1.0
0
+1.0
Industrials Sector
Bearish
-0.25
-1.0
0
+1.0
Other Patterns Detected Today
Bullish Pennant
25 days in pattern
Strong
37.0