- Rating Firm USB Securities downgraded the stock from ‘buy’ to ‘neutral.’
- Lockheed Martin stock surged amid the Israel-Hamas conflict.
- Lockheed Martin stock has surged by over 8% in a week.
The Lockheed Martin (NYSE: LMT) stock price has recently shown a decent jump from the lower level. It has escalated by over 8% in a week and it is a surprising move for the stock. The stock had jumped only by over 3% in a month and by 7% in a year, which is lower than this week’s return. A rise in military spending is a major reason for this sudden jump in the stock price.
The Lockheed Martin stock price has been moving uniformly in a flat range for more than a year. The stock price started the current downtrend on the daily chart in April 2023. It has formed a lower high and lower low chart pattern which confirms this downtrend. However, on the broader time frame, the stock is in a strong uptrend and seems like it is forming a base.
Lockheed Martin has been downgraded by the rating firm USB Securities from ‘buy’ to ‘neutral.’ USB securities have also cut down the target price of the stock from $515 to $470, which is not good. The company has reported a significant growth in Net Income by 444% (YOY) in Q2 2023. This can boost the stock price in future.
Outlook of the Lockheed Martin Stock Chart
LMT stock witnessed a death crossover on the chart in June 2023. This crossover caused a strong selling of the stock, as the stock has corrected by over 14% after this. The stock breached the strong support level of $431 and halted the aggressive selling-off near the level of $393. Currently, the price is facing rejection from the 50-day and 100-day exponential moving averages (EMAs).
The LMT stock price is currently facing rejection from the previous support level of $431.76, which is acting as resistance right now. Apart from this, the other resistance level of the stock is present at the levels of $490.62 and $501.37. If we consider the support level of the stock, they are present at the level of $380.57 and $308.41.
A Brief Examine of Indicators
Exponential Moving Averages are showing bearish sentiment, but the Bollinger Bands and RSI are telling a different story.
Bollinger Bands
Currently, the stock price is trading very close to the upper band. The stock can witness some supply from here. The lower band is present at the $392.25 level, which will act as support for the stock.
Relative Strength Index
The relative strength index (RSI) is currently placed at 61.51, which is a bullish sign for the stock. It also indicates that buyers will face less difficulty in moving the price up.
Conclusion
The recent development in LMT stock can further boost the price. The stock is currently facing resistance and if it breaks through the resistance level of $445, then it can move towards the resistance level of $490. If the price reverses from here, then it may fall towards $392.86 and then $308.41.
Technical Level
Resistance – $445 and $490
Support – $392.86 and $308.41
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.