U.S. defense stocks set to benefit from Middle East geopolitical tensions (LMT, LHX)

Lockheed Martin and L3Harris Technologies may see further upside within their respective bullish technical configurations.

Lockheed Martin Corp (LMT) – Fresh all-time high, further potential upside ahead



click to enlarge charts

  • LMT has staged a bullish breakout on last Fri, 03 Jan 2019 from a 3-month range configuration in place since 17 Sep 2019. Medium-term upside momentum remains intact as seen by the weekly & daily RSI oscillators.
  • Relative strength analysis from its ratio (LMT/SPY) suggest outperformance of LMT against the S&P 500.
  • Bullish bias in any dips above 393.90 for a further potential push up to target the next resistances at 461.10/465.90 and 484.30. On the other hand, a break with a daily close below 393.90 invalidates the bullish breakout for a choppy slide towards the next support at 359.15 (former swing high areas of 02 Feb/24 Apr 2018).
L3Harris Technologies Inc (LHX) – Eyeing a potential break above 271.31 current all-time high


click to enlarge chart

  • Last Fri, 03 Jan 2019, the share price of LHX has staged a gapped up above the intermediate swing highs areas of 23/24 Dec 2018 and rallied by 3.70%.
  • Elements are bullish with its price action that has continued to evolve within a major ascending channel in place since 26 Dec 2018. The upper boundary of the ascending channel stands at 248.30 which also confluences with the 0.618 Fibonacci expansion of the up move from 26 Dec 2018 low to 06 Sep 2019 high projected from 05 Nov 2019 low.
  • Medium-term upside momentum of price action has resurfaced as indicated by the bullish breakout seen in the daily RSI oscillator from a corresponding significant descending resistance after a prior bullish divergence signal.
  • Relative strength analysis from its ratio (LHX / SPY) has indicated that LHX has started to show outperformance against the S&P 500.
  • Bullish bias in any dips above 192.10 medium-term pivotal support for a further potential push up to retest 217.31 current all-time high before targeting the next resistance at 248.30. On the other hand, a break with a daily close below 192.10 negates the bullish tone for a slide towards the next support at 170.55 (former swing range resistance from 24 Apr/16 Oct 2018).

Charts are from eSignal 


Related Articles

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.