Defense Stocks Are Telling Of Major Market Events

Defense stocks have been sneaking under the radar lately as the major stock indexes make new 52 week highs. Most investors will only take notice of these stocks when a war or some type of new conflict takes place. However, it is these stocks that will often react positive before any important military event occurs. It is well documented that their could be a crisis brewing in the Middle East with Iran, and Israel. While there have been tensions in the region for years now, this time oil is involved and that effects the lives of almost everyone in the world. The leading defense stocks have steadily been on the rise since late September 2011. In this Weekly Market Report, we will review three leading defense stocks and find where these stealth market leaders will face important chart resistance. The resistance levels located in this report will serve as powerful trading points and dictate where the stocks should see selling pressure.

Lockheed Martin Corp (NYSE:LMT) is a leading defense company based out of Bethesda, Maryland. Last week, the stock made a new 52 week high at $90.15 a share. Since that high, the stock has pulled back slightly closing the week at $88.50. The daily chart of LMT remains very strong at this time. The stock is trading above all of its major moving averages which puts the stock in a strong technical position on the charts. The only problem with the stock at this time is that it is a bit overbought and extended on the weekly chart. This tells us that a pullback or some consolidation is possible in the near term. Traders should watch for near term daily chart resistance around the $92.50, $97.00, and $102.50 levels. Should LMT stock pullback from current levels the stock should have near term support around the $84.00, and $82.50 levels.


Raytheon Co (NYSE:RTN) is another leading defense company that has surged higher since mid-September 2011 when the stock traded as low as $38.35 a share. Last week, RTN stock finished at $51.37 a share which is just below its 52 week high of $53.12 made on March 9, 2011. The stock is in a confirmed uptrend at this time trading above all of the major daily chart moving averages. Traders must watch for the double top resistance level from last years high. The next important near term resistance levels will be $54.00, 58.75, 62.00, and 67.00. Should the stock retreat from current levels there will likely be daily chart support around the $48.00 area.



General Dynamics Corp (NYSE:GD) is the last major defense company that we shall cover today. This stock has soared higher by $19.00 a share since September 23, 2011 when it traded around $54.00 a share. Traders should watch for near term resistance around the $73.50, $75.00, $78.00, and $83.00 levels. The stock remains in a strong uptrend at this time. Should GD stock pullback from current levels traders must watch for near term support around the $68.50 area. Take careful note of these levels, understand what moves the currencies and profit from the relationship. Join the Pros live as they trade the markets in our Intra Day Stock Chat. View their charts, hear them trade, ask questions, live. If you are not day trading yet would still like to profit from the multi day market moves, then our Research Center is the place for you. Join the best and become the best.