RTX retrace below $100?After a year of consistent upward momentum, RTX has entered overbought territory. Despite strong fundamentals, a minor technical correction appears reasonable.
RTX trade ideas
Calm DownThe market isn't that bad, unless you were foolish and bought at the all time high. But unless you invested in Boeing 2 years ago on margin you're probably fine...
$RTX Rally - Base - RallyNYSE:RTX is looking to come out of a Squeeze currently making higher highs inside the squeeze . 20 ema - 50 ema- 200 ema all stacked for a bullish trend...
Whats your thoughts on this?
Key factors affecting stock performance in the near future.Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
RTX nears settlement in investigation over missile contractsRTX Corp. is approaching the conclusion of a long-standing criminal investigation by the US Justice Department regarding its pricing practices for missile and defense services. Bloomberg sources indicate that the aerospace and defense giant received 32 billion USD from the federal government last year, representing 46% of its total net sales across three business units. This investigation, initiated nearly four years ago by the Justice Department’s Criminal Fraud Section in collaboration with the US Attorney's office in Massachusetts, focused on the pricing of various services offered by RTX.
The settlement, expected to be concluded this summer, includes RTX setting aside 306 USD million to cover the fines. This resolution comes at a time of heightened demand for RTX’s products, particularly given the ongoing military conflicts in Ukraine and the Gaza Strip.
To explore potential trading opportunities, let’s analyse the stock chart of RTX Corp. (NYSE: RTX) from a technical analysis perspective:
On the Daily (D1) timeframe, the RTX stock exhibits a resistance level at 107.90 USD and support at 104.50 USD. The stock has been on a steady uptrend since the end of October 2023. In the event of a downtrend, a reasonable downside target could be set at 90.00 USD.
However, if the uptrend persists and the stock breaches the resistance at 107.90 USD, there could be an opportunity to buy with a short-term target of 120.00 USD. For a medium-term investment strategy, the stock price could rise to 130.00 USD if the positive momentum continues.
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Why This Aerospace Giant is a Must-Buy .As of the latest data, RTX Corporation is trading at $106.27, up 0.82% from the previous close. The stock has shown significant upward momentum over the past few months, hitting a high of $107.32 recently. With a market cap of $141.287 billion and a P/E ratio of 41.35, RTX is currently positioned as a strong player in the Aerospace & Defense sector.
Simple Moving Averages (SMA): The 10-day, 20-day, 30-day, and 50-day SMAs are all trending above the current price, indicating a bullish momentum. The 200-day SMA at $87.45 suggests strong long-term support.
Exponential Moving Averages (EMA): Similarly, the 10-day, 20-day, 30-day, and 50-day EMAs are also above the current price, reinforcing the bullish sentiment.
Relative Strength Index (RSI): The RSI (14) is at 66.28, approaching the overbought territory. This indicates potential for a pullback or consolidation before the next leg up.
MACD: The MACD level is at 1.50 with a sell signal, suggesting a potential short-term correction.
Momentum: Momentum (10) is slightly negative at -0.05, indicating a neutral to slightly bearish short-term outlook.
Volume: The average volume over the last 30 days is 6.45 million, with the recent volume at 3.43 million, suggesting moderate trading activity. This volume supports the current price action but does not indicate any significant divergence.
Ichimoku Cloud: The price is above the Ichimoku Cloud, indicating a strong bullish trend. The conversion line (Tenkan-sen) and the base line (Kijun-sen) are also supportive of the upward movement.
The weekly and daily charts show a clear uptrend with higher highs and higher lows. The stock has recently broken out of a consolidation phase, indicating a continuation of the bullish trend. The recent candlestick patterns are predominantly bullish, with minimal signs of reversal.
The next earnings report is due in 57 days, with the last earnings showing significant YoY growth. The financials are robust, with total revenue and net income showing positive growth. The dividend yield stands at 2.22%, which is attractive for income-focused investors.
Based on the current analysis:
Long Position: A long position can be considered if the stock breaks above $107.50, with a target price of $114.50. The stop-loss should be placed at $104.00 to protect against downside risk.
Short Position: A short position can be considered if the stock fails to break above $107.50 and falls below $104.50. The target for the short position would be $98.00, with a stop-loss at $106.50.
Conclusion
RTX Corporation shows strong bullish momentum with potential for further upside. However, given the RSI is nearing overbought levels and the MACD shows a sell signal, traders should be cautious of a potential short-term pullback. Long positions are favorable above $107.50, with a cautious approach advised around the $104.00 support level. Short positions are speculative and should be tightly managed.
Raytheon's Defense Division Shines in Q1 a Deep DiveRaytheon Corporation's Q1 2024 earnings reveal impressive growth driven by its defense division, which achieved $6.6 billion in sales and contributed significantly to a $202 billion backlog. Key highlights include major defense system sales to Germany and Ukraine. Despite overall growth, civilian divisions like Collins Aerospace and Pratt & Whitney also performed well but experienced declining profit margins. Raytheon's innovative commercial satellite imagers, launched as part of Maxar's WorldView Legion, promise advanced imaging capabilities for various sectors. The article concludes with a bullish recommendation on Raytheon stock, suggesting long positions with entry at $102.59 targets ranging from $105.93 to $119.00, and a stop-loss at $93.01.
Raytheon retrace to point of valuefade the spending , this babys coming back to grab some more value for the big P
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NYSE:RTX is currently exhibiting a double megaphone pattern on the weekly chart, indicating a period of increased volatility and potential uncertainty in the market sentiment. This pattern typically suggests conflicting forces at play, with widening price swings signaling indecision among traders.
Key Pattern: Double Megaphone
A megaphone pattern, also known as a broadening formation, consists of two expanding trendlines that diverge away from each other. This pattern reflects growing volatility and uncertainty, with higher highs and lower lows being established over time. In this scenario with RTX we are showing two long term trends one inside of another.
Explanation:
Textbook Answer: This double megaphone pattern often signifies a struggle between bulls and bears, with neither side gaining a clear advantage. It also represents volatility & opportunity. It's up to us to determine price point where we can capitalize on positioning for profitability!
Real World Answer: Manipulation & Perfect Timing
As the price oscillates between the expanding trendlines, traders should exercise caution and closely monitor key support and resistance levels for potential trading opportunities. I got a feeling this one is going to be a mover!
RSI Breakout with Hidden Divergence:
In addition to the double megaphone pattern, RTX is exhibiting a notable breakout on the Relative Strength Index (RSI) with hidden bullish divergence and the highs are currently compromised with clear and visible hidden bearish divergence leading me to believe that we will revisit the 5th swing level (or in the vicinity of) one more time and see how well prices hold.
Current Situation:
At present, NYSE:RTX is approaching a critical juncture within the double megaphone pattern. Traders must evaluate whether the price will push through the upper trendline or revisit the lower trendline, known as the 5th swing in Elliott Wave Theory.
Potential Scenarios:
Managing Breakout:
If RTX manages to break above the upper trendline of the double megaphone pattern, it could signal a bullish continuation, with the potential for further upside momentum. Traders may consider initiating long positions with appropriate risk management strategies in place.
Revisit of 5th Swing (Lower Trendline)
Conversely, if RTX fails to sustain upward momentum and revisits the lower trendline, it could indicate a bearish reversal or consolidation phase. Traders should be prepared for increased volatility and monitor key support levels for potential downside targets.
Key Levels to Watch:
Resistance: Upper trendline of both of the megaphone patterns.
Support: Lower trendline (5th swing) and previous swing lows within the pattern.
Conclusion:
In conclusion, the presence of a double megaphone pattern on the RTX weekly chart suggests heightened volatility and uncertainty in the market. Traders should remain vigilant and adapt their strategies based on the price action relative to the pattern's trendlines. Granted the series of unfortunate events occurring on the global stage I could almost anticipate what is going to happen here in the long term
As always, it's essential to incorporate risk management techniques and exercise caution when navigating such volatile market conditions.
Note: Ensure to identify your price levels accordingly. This analysis is for educational purposes only and should not be construed as financial advice. Traders should conduct their own research and consult with a financial advisor before making any investment decisions.
RTX a defense contractor large cap LONGRTX has earnings on April 23rd. It has been on a good trend higher since the last earnings. The
Russian war means US defense contractors will be in a growth mode for the intermediate
future. Depleted stores of weapons systems need to be replenished. Pieces and parts are
needed for damaged systems in need of maintenance. I see RTX and others such as GD and
LMT as good long-term trades or investments. Smaller companies in the areas of robotics and
drones may be worth a look. RTX is at its all-time high but it seems much higher is in its future.
RTX falls on good earnings and defense budget issuesRTX is part of the boom defense sector thriving because of back orders created by
the Russian war against Ukraine. No matter good earnings it fell this week because
of the defense budget debate in Congress. No matter good intents to rein in the
defend spending escalation and spend in other areas such as social and infrastructure,
Russia has made the world more dangerous and national security of the US and its allies
trumps most spending except perhaps insterest on the national debt and paying the
holders of Treasuries. RTX dropped more than 10% from its tight consolidation range,
I see this dip as an excellent buying opportunity into a leader in the defense sector.
A couple scenarios for RTX swings.🔉Sound on!🔉
Thank you as always for watching my videos. I hope that you learned something very educational! Please feel free to like, share, and comment on this post. Remember only risk what you are willing to lose. Trading is very risky but it can change your life!
$RTX Ready for Flat Base Breakout?NYSE:RTX Well Fargo upgraded RTX yesterday and give it a $120 price target. I used this morning’s early pullback to get an early start on this one. It will not be a technical breakout until it moves over 92.81. My plan is to build an oversized position after it breaks out of this flat base. I will be patient but have a stop of no more than 3% loss.
On another note, in the first 20 minutes of trading the volume was already 28% of the daily average.
See notes on the chart for more detail. The chart I am using is the All-In-One LevelUp tool available here on TV. Check it out.
Ideas, not investing / trading advice. Comments always welcome. Thanks for looking.
Exited RTX tradeI was able to exit the remainder of my 95$ call setup this morning on the pump past 95$, these contracts were up almost 60% today and I sold the remainder. I will likely avoid RTX going forward as both of my gaps have been filled. Cheers to anyone who traded RTX!
Stocks pairs trading: BA vs RTXExploring the financial indicators and market behaviors of Boeing Co. (BA) and Raytheon Technologies Corporation (RTX) offers crucial insights for investors looking to optimize their portfolio in the aerospace and defense sector. This analysis illuminates the distinct characteristics of these companies, guiding investors toward strategic decisions that resonate with their investment objectives.
Reasons to Consider Buying BA Over RTX:
Valuation and Earnings Potential: BA's forward P/E of 22.83, despite its current negative earnings, points towards a significant turnaround expectation by analysts, with an anticipated EPS next year of $7.88. This suggests optimism about BA's future profitability and recovery potential, making it an attractive bet for long-term investors.
Market Recovery and Growth Prospects: BA's performance metrics, such as an EPS improvement this year of 163.09% and an expected EPS growth next year of 114.88%, signal strong recovery potential and growth prospects. These indicators suggest BA is on a path to overcoming its current challenges and may offer substantial returns as the aviation and aerospace sectors rebound.
Strategic Market Position: Despite its recent performance downturn, BA remains a key player in the aerospace industry with a broad portfolio of commercial and defense products. Its significant market cap of $109.73B and strategic initiatives aimed at overcoming its current hurdles highlight its potential for a strong comeback and future growth.
Reasons to Consider Selling RTX:
Relative Valuation Concerns: RTX's current P/E of 41.75 and forward P/E of 15.18, combined with its EPS growth next year of 14.13%, reflect a relatively balanced outlook but may not offer the same level of undervaluation or turnaround potential as BA. This suggests that RTX, while stable, might not provide the same upside potential as BA in the near term.
Market Performance and Sentiment: Although RTX has shown a positive performance with a quarter growth of 14.17% and a half-year performance of 23.30%, its year-to-date performance is overshadowed by BA's potential for a significant rebound. RTX's steadier, but potentially slower growth trajectory might not appeal to investors seeking more aggressive growth opportunities.
Sector Dynamics and Diversification: RTX, with its diversified presence in the aerospace and defense sectors, faces different challenges and opportunities than BA. While diversification provides stability, BA's focused recovery and growth strategies in the wake of recent setbacks could present a more compelling growth narrative to investors.
Decision:
Buy 1 BA: Given BA's significant growth prospects, expected recovery, and strategic importance in the aerospace sector, it emerges as a compelling buy. Its potential for rebound and future earnings growth, despite current challenges, offers a strong investment case for those looking for long-term value and recovery plays.
Sell 2 RTX: While RTX presents a stable investment with solid fundamentals and a positive outlook, reallocating investments towards BA could provide a higher growth potential and capitalize on the recovery dynamics in the aerospace sector. RTX's performance, although commendable, may offer more modest returns compared to the potential upside in BA's stock as it recovers and regains its market position.
RTX update GapThis is my third RTX trade and the stock is finally starting to push again with a strong pivot. Stochastic RSI points upward and a bullish daily engulfing candle presents itself. I have averaged into april 19th 95$ calls over the past ten days for this setup. My price alerts are the white dashed, my most bullish target is the full gap closure on the dashed green (97$)
-I will start to exit this position greater than 21 days from expiration if price is over 92$
-I had predicted the gap will close around May 24th if the market stays bullish
RTX prepping another tradeI am looking to possibly enter another call setup on RTX soon with this consolidation within the second gap. I have successfully traded this stock with options twice in the last year. My setups tend to be longer-term swing trades. With this said the last gap took about 15 weeks to fill I believe this gap may take about as long if the spx remains strong. The defensive sector could be a protective bet in these markets where finding value is fairly challenging.
-A strong non trend breaking OBV is bullish
-A nice red weekly candle to enter for some price protection
-Multiple tests at the current fib
-Tons of support at 86$ for another averaging in zone
-Id say 95$ calls into April for a 3 month setup, with a 6 month spread 100$ makes sense here to spread out the risk but capture different deltas and other greeks
RTX could go on a nice run! Thank you as always for watching my video. As always please feel free to like, share and comment on this video!
RTX second GAP tradeIf you have followed me since the beginning this was one of my first published GAP trades, I traded GAP 1 and it turned out really well. I would much rather hold calls on this than FTNT right now because if the market takes a downturn with impending conflict in the east I think RTX holds up. I am going to start layering calls here on this golden fib rejection, Id love to buy on a test of the 50EMA or around the green fib as well. Profit take 1 is marked with the dash green. I am still deciding on dates and strikes but about to enter a call spread.
$RTX 61.8 retracement - WWIII? Great RR long with stop below $81.50. Looking to hold this for most of 2024 if it stays above 81.5 level.
RTX targetsThis can really move if it pushes through the 200day ma. I think A 100 $ target is only the first take profit area i would target the top of the trend and A retest on 100$ region or on the 200 ma
RTX flag break and continuance to fill gapsThis is one of the stronger sectors in the market right now with war fears. This call setup played out a lot better than FTNT for the short-term. Gap one is almost completely filled for a nice 17% gain on spot. I am preparing for the Gap 2 setup. 83$ needs to become a supportive area for this to playout.
