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Is Raytheon Ready To Breakout?

Published 09/17/2020, 01:57 AM
Updated 07/09/2023, 06:31 AM

Shares of Raytheon Technologies Corp (NYSE:RTX) are on the verge of a breakout. All September the stock has been moving sideways in a narrowing range while trading inside the August range. Since getting dumped from the Dow, investors have shown little interest. That may be changing this week. RTX is setting up well for a fresh rally leg and remains in a very low-risk entry area.

RTX Chart

A key hurdle for RTX in the near term is the Initial September high($63.20). A clear take out of this area would drive the stock through a key overhead trendline that links the June, August and September highs. Once past RTX has room to run. Daily MACD currently sits at neutral.

On the downside, a close back below $58.00 would violate the September lows indicating more sideways action is ahead before RTX can mount a meaningful rally.

We are long RTX in some managed accounts.

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