Chart of the Day: A Holding Rallies Back, But Remains Bearish
The stock remains below key levels as it tries to carve out a bottom.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
The downtrend of Lockheed Martin LMT was pretty scary late last year. It coincides with the election in early November — the stock has drifted downward steadily, with lower highs and lower lows. That is a textbook definition of a downtrend. But a recent high volume event (mid-February, top pane) may have signaled an "all clear," although we won't trust it just yet.
The indicators are much improved from early February when the stock was drowning in sellers. Stochastics (momentum) has pushed higher, only to the extent the oversold condition was deep and is now mostly over. Notice the candles are now pink rather than purples, indicating only a cautiously bearish stance on the GoNoGo composite of indicators.
Lockheed Martin is in need of a very long base-building period, which may be frustrating to shareholders. But the longer this process the better off LMT will be in the long run.
Earlier today we trimmed our LMT position in our order to raise our cash levels.
We rate Lockheed Martin a Three in TheStreet Pro Portfolio, in a holding pattern.
At the time of publication, TheStreet Pro Portfolio was long LMT.
