Trade Idea: HII - Flat Base Breakout in Strong Sector (Defense)

Trade Idea: HII – Flat Base Breakout in Strong Sector (Defense)

Ticker: HII
Sector: Industrials – Aerospace & Defense
Trade Type: Breakout Swing

Thesis:

HII is forming a flat base just below all-time highs, within a high relative strength sector (Defense), as small caps and industrials rotate into leadership. Price is consolidating tightly near the $330 pivot with rising volume on up days — a classic pre-breakout setup.

Technical Setup:
• Flat base forming for 7+ weeks, ~10% deep (ideal)
• Pivot: $330.10
• Support zone: ~$318.50 (prior resistance)
• MACD: Turning up
• RSI: Rising above 60
• Volume: Increasing on accumulation days
• MA Structure: Price above 10/21/50/200 EMAs – bullish alignment

Trade Plan:
• Entry: Breakout over $330.10 (confirmation with volume)
• Stop: $317.70 (below base + prior swing low)
• Target 1: $354 (measured move)
• Target 2: $365+ (extension zone)

Reward/Risk Ratio: ~5.6:1
Position Sizing: Based on 1% risk per trade

Market Context:
• Industrial sector (XLI): Relative strength increasing
• Small caps (IWM): Breaking multi-month base
• Defense stocks: Leading group (LMT, GD, RTX also constructive)

Summary:

HII is showing institutional characteristics with a flat base, strong sector alignment, and favorable market context. Waiting for volume-backed breakout to trigger long entry. Tight risk, strong upside.

Not financial advice. Just sharing trade structure. Trade your plan.