Shares of Lockheed Martin have not participated in this week’s rally. With the SP 500 Index heading for a close at new March highs LMT will settle out the week well below last week’s lows. The stock is testing a very solid support area at today’s low(Jan. High/50D MAV) but as overhead pressure builds a rebound off this zone is looking less likely.
The declining 200 day moving average has capped back to back monthly highs.
Daily MACD reached overbought levels last month that have marked important highs in the past.
Volume is running fairly hot today. It will be the heaviest downside day since Christmas Eve. LMT bottomed the next session.
A hold near $294.00 would be quite impressive considering the extreme pressure. We expect a deeper pullback to develop if LMT closes below $293.00. We will remain on the sidelines in the near term.
At time of publication we do not have a position in LMT.