There are a couple of names that I am watching for in the Defense space that have had great runs higher since the sequester announcement of last year. They have gotten a bit extended from the point of view of moving averages and trend support and are now pulling back. Take a look.
Lockheed Martin Corporation (NYSE:LMT) has already worked off the technically overbought condition and is moving lower towards the rising trend support and 20 week Simple Moving Average. A pullback to both around 150 and consolidation would get me interested.
The same story is going on in Raytheon Company (NYSE:RTN). It has worked off the overbought condition and the rising trend and 20 week (read also 100 day) SMA are sitting together at about 92 in this name.
Honeywell International Inc (NYSE:HON) is a little ahead of the pack and may end up being the tell for the group. It is at that support area now. If it holds and reverses that the ‘stalk’ mode on the other two gets a little more space on the screen. The volume declining on the pullback is promising but the proof is in the price and where it decides to reverse. Wait for proof.
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