Ion Jauregui – Analyst at ActivTrades
Tungsten, or wolfram, has become the strategic metal of the moment. Following China’s ban, which controls 80% of global production, its price has surged by more than 520%, reaching €2,250 per metric ton in Europe. This increase places Spain in a privileged position as a potential major European supplier of this mineral, key to the defense industry.
Wolfram is essential for the manufacturing of ammunition, armor, and components for fighter jets such as the F-35 Lightning II and Leopard tanks. Listed companies such as Lockheed Martin (NYSE: LMT), manufacturer of the F-35, and Rheinmetall (XETRA: RHM), European leader in ammunition and armor, depend on this metal to maintain their production. The shortage and rising price of tungsten could affect their manufacturing costs, margins, and sourcing strategies, making the monitoring of this metal market key for defense investors.
Spain, with an annual production of barely 700 tons, has strategic projects such as the Barruecopardo mine in Salamanca and El Moto in Ciudad Real. These mines, recognized by the EU as strategic, could position Spain as a key hub for European tungsten supply, reducing dependence on the Chinese bloc and securing critical raw materials for the continent’s defense industry.
For investors, this opens two clear opportunities:
on one hand, mining companies with projects in Spain could see their value increase and attract strategic investment. On the other hand, listed defense companies, such as Lockheed Martin and Rheinmetall, could experience impacts on their margins and contracts due to tungsten volatility, making it relevant to analyze their exposure and supply strategies.
Lockheed Martin: technical trend under scrutiny
The U.S. aerospace and defense giant has shown sideways behavior in its recent charts. From its highs of USD 692, the company has corrected its movement toward the initial impulse zone below the current point of control (POC) around USD 658, trading yesterday at the close around USD 634, losing the support of the 50 moving average, although the 100 and 200 moving averages are still being respected. RSI indicates a correction toward the neutral zone, as does MACD, which has shown a bearish movement. The ActivTrades US Market Pulse indicator signals a Risk-off trend with significant institutional outflows in recent sessions. As long as the price holds above the 100 moving average, we can say that the price will not return to the USD 591.88 support and will move toward new highs. In a short- and medium-term context of “sell” signals across several systems, the long-term context still offers some technical support to the current price.
This mixed outlook fits Lockheed Martin’s operational dynamics: on one hand, it faces recent challenges such as significant losses in some programs and cuts in earnings forecasts, which have weighed on the stock; on the other, it maintains a record backlog (order book) close to USD 194 billion, a structural driver that provides revenue visibility in the coming years.
This translates into a stock that has seen significant gains on broader timeframes, but which requires confirmation of bullish continuation before a technical pullback can be ruled out. The mix of signals reflects a market cautiously assessing the impact of geopolitics and supply chains on one of the world’s leading defense firms.
Rheinmetall: technical correction in the European context
In Europe, Rheinmetall has been one of the major stock market success stories in the defense sector in recent years, driven by increased military spending and its role in European rearmament as one of the main players. However, current technical analysis shows that the company has undergone a correction from its recent highs and a sideways movement around a point of control (POC) of €1,583, with today’s price trending upward. The crossover of moving averages (50, 100, 200) has signaled a sideways movement after touching its fourth bottom in this price zone on March 11, creating a strong support base. RSI indicates neutrality, and MACD, although slightly bearish, appears to be evolving in a corrective upward manner. The ActivTrades Europe Market Pulse indicator, like the U.S. market, signals a Risk-off trend in several sessions, with today’s session being slightly more neutral.
This technical correction has coincided with solid operational results—record sales and growth prospects of up to 45% in 2026—but also with margin and free cash flow forecasts that did not meet market expectations, putting pressure on the share price.
From a market perspective, Rheinmetall’s stock illustrates two simultaneous realities: the strong structural momentum of the European defense industry, reflected in order volumes and strategic positioning, and a phase of technical consolidation that calls for caution among new buyers until clear recovery signals emerge on the charts. If the company continues to increase its record sales results, we could see an increase in long positions and a continuation of the upward corrective trend observed since Thursday the 12th last week. If the 50 moving average crosses above the 100 in the coming sessions, which is relatively foreseeable, we could see a price advance toward previous resistance levels around €1,763 as the first target to recover, and €1,862 as the second. If this trend changes and supports fail to hold, we could see a free fall toward lows of €1,410.
Reviewing the ActivTrades Metals Market Pulse indicator, we can observe an increase in risk appetite in the metals market. In recent sessions from February to date, we have seen an increase in Risk-on sentiment with industrial metals predominating, with the last three sessions being relatively neutral with market balance. This signals a clear appetite for industrial commodities.
Conclusion: technical investment in times of tungsten
Tungsten has ceased to be a discreet metal and has become a strategic resource that moves markets. Spain, with key mines such as Barruecopardo and El Moto, could become a decisive European supplier, while listed defense companies such as Lockheed Martin and Rheinmetall see how metal volatility impacts their margins and strategies. For investors, tracking Spanish production and the technical indicators of these companies is key: Spain not only extracts tungsten, but also financial and strategic opportunities.
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
Tungsten, or wolfram, has become the strategic metal of the moment. Following China’s ban, which controls 80% of global production, its price has surged by more than 520%, reaching €2,250 per metric ton in Europe. This increase places Spain in a privileged position as a potential major European supplier of this mineral, key to the defense industry.
Wolfram is essential for the manufacturing of ammunition, armor, and components for fighter jets such as the F-35 Lightning II and Leopard tanks. Listed companies such as Lockheed Martin (NYSE: LMT), manufacturer of the F-35, and Rheinmetall (XETRA: RHM), European leader in ammunition and armor, depend on this metal to maintain their production. The shortage and rising price of tungsten could affect their manufacturing costs, margins, and sourcing strategies, making the monitoring of this metal market key for defense investors.
Spain, with an annual production of barely 700 tons, has strategic projects such as the Barruecopardo mine in Salamanca and El Moto in Ciudad Real. These mines, recognized by the EU as strategic, could position Spain as a key hub for European tungsten supply, reducing dependence on the Chinese bloc and securing critical raw materials for the continent’s defense industry.
For investors, this opens two clear opportunities:
on one hand, mining companies with projects in Spain could see their value increase and attract strategic investment. On the other hand, listed defense companies, such as Lockheed Martin and Rheinmetall, could experience impacts on their margins and contracts due to tungsten volatility, making it relevant to analyze their exposure and supply strategies.
Lockheed Martin: technical trend under scrutiny
The U.S. aerospace and defense giant has shown sideways behavior in its recent charts. From its highs of USD 692, the company has corrected its movement toward the initial impulse zone below the current point of control (POC) around USD 658, trading yesterday at the close around USD 634, losing the support of the 50 moving average, although the 100 and 200 moving averages are still being respected. RSI indicates a correction toward the neutral zone, as does MACD, which has shown a bearish movement. The ActivTrades US Market Pulse indicator signals a Risk-off trend with significant institutional outflows in recent sessions. As long as the price holds above the 100 moving average, we can say that the price will not return to the USD 591.88 support and will move toward new highs. In a short- and medium-term context of “sell” signals across several systems, the long-term context still offers some technical support to the current price.
This mixed outlook fits Lockheed Martin’s operational dynamics: on one hand, it faces recent challenges such as significant losses in some programs and cuts in earnings forecasts, which have weighed on the stock; on the other, it maintains a record backlog (order book) close to USD 194 billion, a structural driver that provides revenue visibility in the coming years.
This translates into a stock that has seen significant gains on broader timeframes, but which requires confirmation of bullish continuation before a technical pullback can be ruled out. The mix of signals reflects a market cautiously assessing the impact of geopolitics and supply chains on one of the world’s leading defense firms.
Rheinmetall: technical correction in the European context
In Europe, Rheinmetall has been one of the major stock market success stories in the defense sector in recent years, driven by increased military spending and its role in European rearmament as one of the main players. However, current technical analysis shows that the company has undergone a correction from its recent highs and a sideways movement around a point of control (POC) of €1,583, with today’s price trending upward. The crossover of moving averages (50, 100, 200) has signaled a sideways movement after touching its fourth bottom in this price zone on March 11, creating a strong support base. RSI indicates neutrality, and MACD, although slightly bearish, appears to be evolving in a corrective upward manner. The ActivTrades Europe Market Pulse indicator, like the U.S. market, signals a Risk-off trend in several sessions, with today’s session being slightly more neutral.
This technical correction has coincided with solid operational results—record sales and growth prospects of up to 45% in 2026—but also with margin and free cash flow forecasts that did not meet market expectations, putting pressure on the share price.
From a market perspective, Rheinmetall’s stock illustrates two simultaneous realities: the strong structural momentum of the European defense industry, reflected in order volumes and strategic positioning, and a phase of technical consolidation that calls for caution among new buyers until clear recovery signals emerge on the charts. If the company continues to increase its record sales results, we could see an increase in long positions and a continuation of the upward corrective trend observed since Thursday the 12th last week. If the 50 moving average crosses above the 100 in the coming sessions, which is relatively foreseeable, we could see a price advance toward previous resistance levels around €1,763 as the first target to recover, and €1,862 as the second. If this trend changes and supports fail to hold, we could see a free fall toward lows of €1,410.
Reviewing the ActivTrades Metals Market Pulse indicator, we can observe an increase in risk appetite in the metals market. In recent sessions from February to date, we have seen an increase in Risk-on sentiment with industrial metals predominating, with the last three sessions being relatively neutral with market balance. This signals a clear appetite for industrial commodities.
Conclusion: technical investment in times of tungsten
Tungsten has ceased to be a discreet metal and has become a strategic resource that moves markets. Spain, with key mines such as Barruecopardo and El Moto, could become a decisive European supplier, while listed defense companies such as Lockheed Martin and Rheinmetall see how metal volatility impacts their margins and strategies. For investors, tracking Spanish production and the technical indicators of these companies is key: Spain not only extracts tungsten, but also financial and strategic opportunities.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.