Has LMT Reached The End? | War | Historic Analysis Disclaimer: I am in no way condoning violence, nor support either side of any conflict. This will be an analysis of NYSE:LMT alone. With that being said let's dive in.
Introduction
We all heard the breaking news, as of October 7th, 2023 Israel and Palestine are officially at war with each other creating tension around the globe. Now I know you probably wondering, how it affects our economics on the Western front, specifically the stock market. What can we expect in the future, and of course can you turn a profit from all this? Toady, we'll dive deep into what stocks to pay attention to and how involved NYSE:LMT , AMEX:DFEN , and NYSE:RTX really are. So strap on your seat belts as we talk about the M word. No not morals, Money.
The Big Bois
Without a doubt the largest companies in the US for military exports are NYSE:LMT , NYSE:RTX , and $NYSE:GD. The largest consumers of these military goods are Korea, Japan, Australia, Saudi Arabia, and Israel. I will leave the AMEX:DFEN ETF here which holds most of the companies I've mentioned and then some. We want to look at these companies when we hear conflict. With that being said let's head over to some charts.
*For a more in-depth analysis of military manufacturers, I suggest researching what companies are good for and what they supply, but at the end of the day, they all complement each other, which is why you really can't go wrong with $AMEX:DFEN. If it really matters it's just a Google search away.
1D NYSE:LMT
Percentage Increase Zones: I labeled these zones so we can get a clear view of the effects of war/conflict. This is the type of capitalization you can get from these scenarios, and we are seeing similar percentages to the ones from the Russian-Ukraine conflict. I believe the highest this can climb would be the all-time high, which just so happens to reach a perfect 29%, so something to be looking at.
Possible Rejection Levels: These are levels that can play as a resistance/retrace before a rejection to the downside.
Possible Support Levels: These are the levels that can play as a support/reversal to the upside.
Moving Average: 200 MA could play as a resistance and we could have reached the end of this first swing before we fell back down the the previous low.
MACD: MACD Showing signs of a bearish divergence perhaps, keep a sharp eye on that.
1W NYSE:LMT
Elliot Waves: I debated whether or not wanted to mark this as a complete Elliot Wave or not (12345) then (ABC). To each their own, this is expected when we talk about something as subjective as Elliot Waves.
FIB: The Fib is used to show possible retracement levels, which I labeled out in the "possible rejection zone" if this stock were to go lower.
Moving Average: 200 MA played as a perfect pillow, now we just see if it can stay that way.
Relative Strength Index: In each "war" zone I have shown the amount of buying pressure we usually see during these conflicts, but it seems we have no pressure, nor any indication that this will be bullish. In fact, we were oversold not too long ago.
Stoch RSI: Same with the Stock RSI we are in the (ABC) faze of the indicator.
Summary
Overall, we are seeing more downward pressure than any bullish indications, I believe we need to get through the bears first before this stock skyrockets. Another factor is that war must be prominent, something we really shouldn't be rooting for.
Bonus
NYSE:RTX and AMEX:DFEN
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