Raytheon Company (NYSE: RTN)

Raytheon Company develops integrated products, services, and solutions in the areas of sensing; effects; command, control, communications, and intelligence; mission support; and cyber and information security worldwide. It operates in four segments: Integrated Defense Systems; Intelligence, Information, and Services; Missile Systems; and Space and Airborne Systems. Raytheon Company serves the U.S. Department of Defense (DoD), the U.S. Intelligence Community, the Federal Aviation Administration, the U.S. Armed Forces, the National Oceanic and Atmospheric Administration, Department of Homeland Security, the National Aeronautics and Space Administration, and other international customers.

Please take a look at the 1-year chart of RTN (Raytheon Company) below with my added notations:

1-year chart of RTN (Raytheon Company)

For the most part, RTN rallied nicely up to April of this year. However, the stock has been trading sideways for the last few months while holding an important level of support at $95 (blue). Earlier this week the stock finally broke that support. RTN should be moving overall lower from here.


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The Tale of the Tape: RTN had a key level of support at $95. Now that the stock has broken support, a trader might want to enter a short trade at or near the $95 level with a stop placed above that level. A break back above $95 could negate the forecast for a move lower.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach