On 7th March 2022, this company reached an all-time high of 479.99 USD. However, it struggled to move higher after that and started to exhibit choppy price action. Over the past few weeks, it formed a range within which it tends to move; this rectangle pattern spans between 429.32 USD and 449.58 USD. We will monitor the price action of LMT as we anticipate a breakout either to the upside or downside. If the breakout to the downside occurs, an interesting opportunity of shorting this stock may present itself as this stock is still up over 30% in 2022.
Technical analysis - daily time frame RSI, MACD, and Stochastic are bullish. However, the trend lacks momentum. Overall, the daily time frame is neutral.
Illustration 1.01 Illustration 1.01 shows the setup for LMT with two alternative scenarios. A breakout above the short-term resistance will be bullish, while a breakout below the short-term support will be bearish.
Technical analysis - weekly time frame Stochastic, RSI, and MACD are all bearish. DM+ and DM- are bullish. Overall, the weekly time frame is slightly bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Solid analysis. The only thing I would add is that as war pressures will likely continue to escalate over the next few years, it would give Lockheed great demand. They are already in great demand as they supply a large portion of US military equipment (Roughly 30% last I checked) and they are the largest defense contractor in the world by a long shot. This doesn't account for the vast classified prototypes they are tied to that lead the military race. Just something to keep in mind
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@NoOneWhoIsSomeone, Very valid point, indeed. It is one that worries me. But then, if the whole stock market starts selling off again, it would not surprise me to see this stock being affected too. However, the bullish breakout took place yesterday, so I suppose shorts must wait. Thanks for the comment.