Defense Companies May Have More Fuel Left In The Tank
The defense companies have rallied along with the major stock market indexes over the past week. These stocks will often rely on military contracts as a major part of their revenue stream. While these stocks have staged a sharp snapback rally over past week they will all come into important daily chart resistance very soon.
Raytheon Co (NYSE:RTN) is a leading defense company that has rallied higher by $3.00 over the past five trading sessions. This morning, RTN stock is trading lower by 0.18 cents to $41.90 a share. The stock has potential upside to the $43.00 area on the daily chart. The stock will have intra-day support around the $41.50 area. The intra-day resistance level will be around the $42.25 area if the stock can catch a bid and rally from here.
Lockheed Martin Corporation (NYSE:LMT) is another leading defense company based out of Bethesda, Maryland. Traders should take note that this stock has struggled to trade above the daily chart 200 moving average which is around the $77.00 area. Until the stock closes solidly above that level traders will have to remember that it will remain a very good resistance area. The stock will have intra-day resistance around the $76.25 , and $76.75 levels. Should the stock decline intra-day traders should watch for intra-day support around the $75.35, and $75.00 levels.
Other leading defense stocks that could have a little more upside on the daily charts include General Dynamics Corp (NYSE:GD), Northrop Grumman Corp (NYSE:NOC), and Boeing Co (NYSE:BA). Traders should remember that all of the defense companies seem to trade in tandem with each other.