Raytheon (NYSE:RTN) -- maker of the Patriot Missile system -- has had a great run higher over the last two years. But since November the stock has moved sideways, out of the limelight that has entranced similar stocks like Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT). A look at the stock chart, though, suggests it is time to put this stock on your radar.
Five things on this chart point to a possible breakout higher. First the price is back up at resistance after a two-step move from the January 29 low. Next, the Bollinger Bands® are squeezing, often a precursor to a move in price. Third, the momentum indicator RSI is in the bullish zone and rising, supporting a move higher. It is also moving higher as it sits above the 20-day SMA, where the trend moves higher have occurred. Finally, the MACD indicator is also rising.
A move in price over the resistance zone at 110.80 will seal the bullish case.
Until then, keep this stock on your radar.