Put Raytheon on Your Radar

• Posted by Greg Harmon
• on March 2nd, 2015

Raytheon ($RTN) makes that badass Patriot Missile system above. Not something you want to fight against. And their stock price had a great run higher over the last two years. But since November the stock has moved sideways, out of the limelight that has entranced some similar stocks lately like Boeing ($BA) and Lockheed Martin ($LMT). A look at the stock chart today though suggests it is time to put this stock on your radar.

Five things on this chart point to a possible break out higher. First the price is back up at resistance after a two step move from the January 29th 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 the price over the resistance zone at 110.80 will seal the bullish case. Until then keep this stock on your radar.

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