LONG POSITION - 2 Possible entries - Lockheed Martin (LMT)
Sector: Industrial Goods
Industry: Aerospace/Defence Products & Services
BASIC INFO:
Lockheed Martin Corporation is a security and aerospace company in the research, design, development, manufacture, integration and sustainment of technology systems, products and services worldwide.
It operates through four segments:
Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space Systems.
Earnings over the last 4 quarters have been better than estimated as well as a few big contracts awarded to the company finance.yahoo.com/quote/LMT?p=LMT . Price/Earnings for LMT are still above the industry average by at least 50%. Earnings Forecasts also look promising with a rising earning per share forecast over the next 4 years. Return on Equity gets a passing score as it has also been increasing for at least two consecutive years.
Here are 2 possible entry points to get in on the Lockheed Martin(LMT) up trend:
Price has been trading high above the 50 day moving average for the last month but still within the trend range. However this might indicate a posable correction back to the moving average and we might also have resistance around the 300 mark so we need to be careful of that.
Option 1 - The price pushes straight through 300, has a small resistance wobble and carries on with its up trend (MA50 might stop this happening).
Time to get in would be after we’re sure resistance has been broken i.e. 302.
Option 2 - Price rebounds off top trend line or the 300 mark forcing price to retrace closer the the MA50 and to the bottom trend line (Red Dotted Line) before attempting to break the 300 while moving with its average.
Time to get in would be after we have rebounded off the bottom trend line (Red Dotted Line) and have seen a day or two of positive price action.
For this stock my preference would be to aim for a stop just below the bottom trend line (Red Dotted Line) as this could be an indicator the trend is over. However as the trend continues I would add to the position every time the price bounces off the bottom trend line (Green Arrows).
Industry: Aerospace/Defence Products & Services
BASIC INFO:
Lockheed Martin Corporation is a security and aerospace company in the research, design, development, manufacture, integration and sustainment of technology systems, products and services worldwide.
It operates through four segments:
Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space Systems.
Earnings over the last 4 quarters have been better than estimated as well as a few big contracts awarded to the company finance.yahoo.com/quote/LMT?p=LMT . Price/Earnings for LMT are still above the industry average by at least 50%. Earnings Forecasts also look promising with a rising earning per share forecast over the next 4 years. Return on Equity gets a passing score as it has also been increasing for at least two consecutive years.
Here are 2 possible entry points to get in on the Lockheed Martin(LMT) up trend:
Price has been trading high above the 50 day moving average for the last month but still within the trend range. However this might indicate a posable correction back to the moving average and we might also have resistance around the 300 mark so we need to be careful of that.
Option 1 - The price pushes straight through 300, has a small resistance wobble and carries on with its up trend (MA50 might stop this happening).
Time to get in would be after we’re sure resistance has been broken i.e. 302.
Option 2 - Price rebounds off top trend line or the 300 mark forcing price to retrace closer the the MA50 and to the bottom trend line (Red Dotted Line) before attempting to break the 300 while moving with its average.
Time to get in would be after we have rebounded off the bottom trend line (Red Dotted Line) and have seen a day or two of positive price action.
For this stock my preference would be to aim for a stop just below the bottom trend line (Red Dotted Line) as this could be an indicator the trend is over. However as the trend continues I would add to the position every time the price bounces off the bottom trend line (Green Arrows).
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