Why are these 2 defence stocks tumbling today?

Two ASX-listed defence stocks are under pressure on Tuesday, with both giving back recent gains after a strong run over the past year.

Shares in Droneshield Ltd (ASX: DRO) and Electro Optic Systems Holdings Ltd (ASX: EOS) are both trading lower at the time of writing. This weakness comes despite no major company-specific announcements.

Here’s what appears to be driving the move.

Droneshield share price pulls back

The Droneshield share price is down 6.27% to $3.59.

This follows a strong rally over the past year, with the stock still up around 240% over 12 months. However, its short-term performance shows more volatility, with shares down 12.86% over the past week.

From a technical view, the recent pullback comes after a period of strong momentum that pushed the stock towards the upper end of its bollinger band range in recent months.

The relative strength index (RSI) is currently around 46, suggesting momentum has cooled and is closer to neutral levels. This indicates buying pressure has eased following the earlier run-up.

The chart also shows a pattern of lower highs forming since late 2025, which can point to a loss of upward momentum in the near term.

There have been no fresh announcements from the company today, suggesting the move is being driven by broader market activity.

EOS share price also under pressure

EOS shares are down a sizeable 8.84% to $8.15.

Like Droneshield, EOS has delivered strong longer-term gains, with the stock up more than 480% over the past 12 months. However, the recent trend has turned more negative, with shares falling roughly 23.97% over the past week.

Looking at the technicals, EOS has moved lower after failing to hold recent highs near $11.80 earlier this month.

The stock is now trading closer to the middle of its bollinger band range, with the lower band sitting well below current levels. This suggests there is still room for further movement in either direction.

RSI is currently around 43, indicating weakening momentum and reduced buying strength.

The pullback follows a sharp rally driven by increased demand for defence and counter-drone technology, which had pushed valuations higher in a short period.

What’s behind the weakness?

The declines in both stocks appear to be linked to a broader market pullback, alongside profit-taking following strong recent gains.

Both companies have been among the strongest performers on the ASX over the past year, supported by rising global defence spending and increased focus on drone and counter-drone capabilities.

In both cases, technical indicators show momentum has eased, with prices moving away from recent highs and RSI levels trending lower.

In addition, the absence of new announcements also indicates the moves are being driven by overall market conditions.

The post Why are these 2 defence stocks tumbling today? appeared first on The Motley Fool Australia.

More reading

• 5 most traded ASX 200 shares since the war began
• 3 massively popular ASX 200 shares experts say to sell (inc. CBA)
• Down another 5% today: Is the party finally over for the EOS share price?
• Why DroneShield, Guzman Y Gomez, IAG, and Myer shares are falling today
• What’s going on with DroneShield shares today?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Electro Optic Systems and is short shares of DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.