Indications Suggest NYSE:LMT Could Be on the Verge of a Breakout.

A possible breakout setup was detected on LOCKHEED MARTIN CORP (NYSE:LMT) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:LMT.

What is the technical picture of NYSE:LMT telling us.

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Taking everything into account, LMT scores 7 out of 10 in our technical rating. This is due to a decent performance in both the short and longer term time frames. Compared to the overall market however, LMT is a bad performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• LMT is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so LMT is lagging the market slightly.
• In the last month LMT has a been trading in a tight range between 439.33 and 459.30.

Our latest full technical report of LMT contains the most current technical analsysis.

How do we evaluate the setup for NYSE:LMT?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:LMT is 9:

Besides having an excellent technical rating, LMT also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 464.31. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 455.20, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NYSE:LMT?

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.