Lockheed Martin Lifts Off on the Charts
After earnings beat, LMT appears on my trading radar.
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Defense contractor Lockheed Martin Corporation LMT reported an adjusted earnings per share of $7.11 Tuesday, which beat estimates by $0.66 and revenue of $18.1 billion, which beat by $1.09 billion.
Let's check out the trends and indicators.
In this daily bar chart of LMT, below, I can see that prices have been trending in a choppy pattern but still making upside progress. LMT is trading above the rising 50-day moving average line and above the rising 200-day moving average line. The On-Balance-Volume (OBV) line strengthened from a low in February but shows a sideways move since June. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero-line.
In this weekly Japanese candlestick chart of LMT, below, I can see some interesting developments. Prices were strong in 2021 and 2022. A decline in 2023 lasted until September when a "V" bottom quickly changed the trend. Prices rebased in the past year and are now poised to push up to new highs. LMT trades above the rising 40-week moving average line. The weekly OBV line shows gains since February. The moving average convergence divergence oscillator is above the zero-line but the two moving averages of the indicator are on top of each other. Trading volume needs to ratchet up in the days ahead if a breakout is going to actually happen.
In this daily Point and Figure chart of LMT, below, I can see a potential upside price target in the $515 area.
In this weekly Point and Figure chart of LMT, below, I can see a price target in the $527 area.
Bottom line strategy: LMT is poised to make a new 52-week high Tuesday. Traders could probe the long side of LMT at current levels risk to $469.
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