Shares of Raytheon are on the verge of a breakout. All September the stock has been moving sideways in a narrowing range while trading inside the August range. Since getting dumped from the Dow; https://www.marketwatch.com/story/here-are-the-big-winners-among-us-stocks-during-a-sizzling-august-2020-08-31?mod=mw_quote_news, investors have shown little interest. That may be changing this week. RTX is setting up well for a fresh rally leg and remains in a very low risk entry area.
A key hurdle for RTX in the near term is the Initial September high($63.20). A clear take out of this area would drive the stock through a key overhead trendline that links the June, August and September highs. Once past RTX has room to run. Daily MACD currently sits at neutral.
On the downside, a close back below $58.00 would violate the September lows indicating more sideways action is ahead before RTX can mount a meaningful rally.
We are long RTX in some managed accounts.