LOCKHEED, Showing Downside Potential, Big Rising Wedge Forming!Hello, Traders Investors And Community, welcome to this analysis about the recent events, the current price-structure and what we can expect the next days, hours and weeks considering lockheeds overall market-situation. As already mentioned in previous analysis the stock-market is full of contradictory signals within the top large-cap-stocks where stocks looking rather bearish than bullish while others already making new highs and taking out the old-established all-time-high after the corona-breakdowns shown this year it was an emerse opening alter for the various companies where it crystallized out which companies survive and which not like it was the case in previous stock-market-crashes in the past. A significant factor, in this case, was the adaptability to the corona-outbreak, the resulting lockdowns, and the capacity to develop during that crisis as somewhere clear winners there where also companies which hit it hard and now bathing out the economic damage which happened in the real economy.
As LOCKHEED is one of the major arms, aerospace, and defense companies this is not a high fundamental fact which is playing an overall bearish role during the corona-crisis as more and more protection is needed can increase by the time but it also can decrease when the situation changes. But when considering the technical side of things we can measure important and meaningful signs within LOCKHEED at the moment which should not be ignored. As LOCKHEED recovered a little bit from the heavy corona-breakdowns the marginal uptrend begins to struggle now and there is coming more and more bearish development into the landscape with some higher bearish volume. What is playing another big role currently is the possible bearish rising wedge formation the stock currently forms which you can watch marked in blue within my chart, such a formation is normally a bearish one which confirms to the downside when the bearish wave count confirmed and the stock is closing below the lower boundary.
While the stock found some support at the 327.5 level currently we can expect a bounce from here to visit some higher levels and form the final wave E of the bearish wave count you can see marked in my chart, when this scenario has confirmed there is a huge bearish confluence cluster at the upper boundary marked in red in my chart where bearish pressure will show up with a high amount of probability. When this confirms properly the rising wedge can be confirmed in the schedule to show more downside and confirm it. This will be a good environment to open a possible short-position with targets way below the lower boundary, remember that this has to confirm properly. The short-position can be opened with an aggressive entry directly in the rising wedge when the first bearish signs show up after the wave count has completed or with a conservative entry after the lower boundary has confirmed to the downside although the latter plan will be the smarter to execute in this case traders should decide on individual risk-preferences.
This current outlook with LOCKHEED is playing into the main theory that the stock-market-crash and bear-market are not over already and that main parts of the market just trading into a huge bull-trap which will confirm when the bearish pressure increases again. The world and economy has still not recovered from the heavy breakdowns and volatile movements seen this year as the real economy is still not at a healthy level where it confirms the decent stock-market-rally and the protests against grievances we face these days going on in many countries and do not seem like they are stopping rightly tomorrow. This means compared to the stock-market that the bearish pressures can increase again when there is not a serious change in the overall current condition of real economy offenses. Therefore the bearish scenario also in comparison with the whole other market should not kept by the side this means to do not get caught on the wrong foot and take advantage of possible opportunities when they arise either on the bullish or bearish side.
In this manner, thank you for watching, support for more market insights, good day everybody, and all the best my friends.
Fortune is like the market, where, many times, if you can stay a little, the price will show direction.
Information provided is only educational and should not be used to take action in the markets.
