Space stocks can be a wild ride, and Tuesday is proving no exception. Intuitive Machines (Intuitive Machines (LUNR)) is trading about 7% higher after announcing a big new contract. The company, which made headlines with its lunar lander missions, is now getting into the missile defense game.

The move follows the company's announcement that it was selected by L3Harris Technologies (L3Harris Technologies (LHX)) to support spacecraft platform development for the Space Development Agency's Accelerated Missile Defense Tranche 3 (AMDT3) mission. This isn't just a small pilot project; under the agreement, Intuitive Machines will design, build, and deliver 18 advanced spacecraft platforms to support missile tracking solutions for hypersonic and ballistic defense.

The AMDT3 mission is part of the Golden Dome for America's space-based capabilities, an initiative aimed at advancing homeland defense, deterrence, and U.S. space operation resilience. It's a significant vote of confidence in Intuitive Machines' technology and execution capabilities.

Management Comments On Selection

Chris Johnson, President of Space Systems at Intuitive Machines, framed the selection as a continuation of a trusted relationship. "AMDT3 builds on a foundation of proven performance and mission trust established through our previous Tracking Layer mission selections. We look forward to continuing to support this important mission with L3Harris and the Space Development Agency," he said. "We are committed to delivering spacecraft platforms and integrated systems that enable sustained, scalable operations across demanding mission architectures."

Infrastructure And Operational Footprint

The 18 units will be built on Intuitive Machines' IM 300 platform, which is also being used for upcoming Tranche 1, Tranche 2, and Tranche 3 Tracking Layer missions. The IM 300 platform is versatile, supporting Earth observation, connectivity, and defense operations. Intuitive Machines operates an integrated Build-Connect-Operate infrastructure model, and the company has already built over 300 spacecraft and delivered over 260 kilograms of payload to the lunar surface. That track record likely helped seal the deal.

Critical Levels To Watch for LUNR Stock

Even with Tuesday's pop, the technical picture for LUNR isn't exactly rosy. At $13.74, the stock is still in a longer-term downtrend on the moving averages. It's trading 2.2% below its 20-day simple moving average (SMA) of $14.19, and far below its 50-day SMA of $22.66, 100-day SMA of $23.59, and 200-day SMA of $19.14. That "stack" of moving averages overhead means rallies could run into sellers as price approaches those levels. It's a classic resistance setup.

The bigger-picture context also matters: the stock is well off its 52-week high of $46.75 set in May, but still above its 52-week low of $7.78 from November. There's a recent swing high in May and a swing low in July, so the stock is trying to find its footing.

LUNR Price Action: Intuitive Machines shares were up 6.91% at $14.00 at the time of publication on Tuesday, according to market data.