NOC has been consolidating below the 490$ resistance since march.
Technical Indicators are nowhere near overbought, while price action contracted.
Once it expands, there could be a massive pop upwards, since fundamentally there are just too many good things to ignore.
Stock looks like a prototypical William O‘Neill break out candidate.
I‘m long.
No...
I wanted to post this yesterday, there is still time though.
I can point out the double top, I can point out the huge divergence, or how the market is overbought...
However on June 6th, a ton of financial media companies such as investors.com were saying this was a solid buy.
This is the prime example of why the "news" or any other FA is not in my trading....
Entry with a super tight stop close to the danger point of making an outside day. A tight stop and the liquidity of this stock gives the opportunity to go bigger on size.
Avg Cost: 461.06
Bought: 18K
Risk: 150 USDs
Risk: .92%
NOC getting closer to a breakout
12 Weeks Long Base
Making Higher Lows
Showing Great Relative Strength
Institutional Ownership: 84%
Measured Target: 540
The PEAD projected a Bullish outlook for $NOC after a Negative over reaction following its earnings release placing the stock in drift C with an expected accuracy of 75%.
The PEAD projected a Bullish outlook for $NOC after a Negative Under reaction following its earnings release placing the stock in drift D with an expected accuracy of 66.67%.
Northcop Grumman Corporation
As you can see, this company is on all-time high, we have a strong demamd zone on the daily timeframe.
This buying opportunity is a high quality setup. And it has a high probability to hit the take profit.
Possible stop under C or recent pocket pivot.
NOC broke the resistance of the prior gap down. More resistance overhead at tops of long candle wicks. There is a long legged doji and 2 shooting stars up there.
The bottom of today's candle is sitting on the 50 SMA/orange. Longer term moving averages are sloping up. The 20 needs some work/blue/and is sloping...
Like this a lot. If we can hold the blue range I think its possible it finally begins its move out of the consolidation its been in for a long time. When it leaves it will LEAVE
NOC recently tried breaking extreme resistance twice and created a double top formation in the process, unless we break back above resistance a test of 344.16 is very likely in the near future.
also pay attention RSI! its about to break below local RSI support which is not a good sign for longs. Like and follow for more 💘
Looking at the highlighted places there is a fluctuation between each increase in stock. Clear indications in 3 different areas with a high increase where the oscillator starts fluctuating and after a tremendous rise in stock. I think this tool can be further manipulated and used with research and time.
NOC in Defense space.
With US administration now promising retaliation for Kabul bombings, NOC is a prime player and just closed above the major MA for the first time in a couple months while in a longer-term bullish trend.
Setting up a nice box long setup and building its base right around the 50 MA. 2 things against the setup right now, High volume black bar on Friday and ATHs from Jan 2020 right above where the pattern is forming (red line on chart). That could be a problem for the breakout. None the less, its worth adding to your watchlist.
