Stock of the day: Lockheed Martin
21 August 2023
Welcome to the first "Stock of the Day" for this week, and today we're turning our spotlight onto Lockheed Martin. As the broader market grapples with a correction, many instruments are either already in sell territories or teetering on the brink. Lockheed Martin isn't immune to this turbulence and stands just a whisker away from triggering a prominent sell signal.
Recently, Lockheed Martin's stock faced a pullback, bringing it to a crossroads where it's now contesting two vital support zones. The first of these support regions is a horizontal threshold situated at $442, which is illustrated on charts with a distinctive green line. Concurrently, the price is also seeking solace at a black line that represents a long-standing uptrend, a testament to the stock's historical resilience.
The initial skirmish at these dual supports resulted in a bounce, indicating some buying interest at these levels. However, it's evident that sellers haven't retreated entirely, and their looming presence keeps the bearish narrative alive. Traders and investors should be alert to the potential scenario where the stock closes below both these pivotal supports. Such a move would be an unmistakable bearish cue, indicating that the stock could be in for a more extended period of depreciation.
That said, every cloud has a silver lining. If Lockheed Martin's stock decides to rally, breaking free from the gravitational pull of these supports, there's an optimistic trajectory ahead. For the bulls to truly stamp their authority, the stock would need to overcome the yellow horizontal resistance, pegged at $467. This resistance is further fortified by a red line that charts the medium-term downtrend. A successful breach of both these barriers would unfurl a green flag, signaling a robust buying opportunity with the potential for appreciable long-term gains.
In summary, Lockheed Martin is at a critical juncture. While the broader market sentiment may be casting a shadow, the stock's technical setup suggests that significant moves are on the horizon. Whether it chooses the path of the bull or the bear, one thing is certain: traders should be ready to act.