Aerospace Companies Are Taking Flight

• Posted by Greg Harmon
• on September 9th, 2014

The entire world is focused on the Apple product launch or so it seems. But unnoticed off in the distance there are a group of stocks that don’t seem to care. For the last 6 months or more Aerospace stocks have done nothing. They have just moved in a range heading sideways. But with few eyes on them they are now at the end of the tarmac and revving their engines to take flight.

Boeing, $BA, has 4 things in its favor to move higher. The price is about to break the neckline of an Inverse Head and Shoulders pattern. This targets a move to at least 140. There is also a Measured Move higher in play now that targets 135.50. Finally the 2 momentum indicators support continued upside, with the MACD crossing up and the RSI bullish and rising.

Lockheed Martin, $LMT, actually moved out a bit early, but the consolidation in a bull flag last week is giving an entry point. With the break back higher it targets 186 on a Measured Move that would complete a 3 Drives pattern. It also has a bullish RSI and the MACD leveled in the pullback during the flag.

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