Lockheed Martin has been consolidating in a narrow range since late July shortly after a very solid Q2 earnings report: https://money.usnews.com/investing/news/articles/2020-07-21/lockheed-martin-raises-2020-profit-forecast-shares-jump. The stock reached a higher monthly high in August but could not overcome heavy gap resistance near $403.00. The sideways action continued into September with a lower monthly high and so far in October LMT is working on a second straight lower monthly high. Will next week’s earnings report (https://www.zacks.com/stock/news/1075398/lockheed-martin-lmt-gains-as-market-dips-what-you-should-know?cid=CS-MKTWTCH-HL-tale_of_the_tape|yseop_template_6-1075398&mod=mw_quote_news) provide the spark needed to end this range bound action?
A key hurdle for LMT will be the September high. Once $402 is cleared the stock will have room to run. On the downside a close back below $374.00 would violate the September lows indicating more sideways action is on the way. We believe the current set up will be resolve to the upside. This week’s low is on solid footing(50D MAV) and the stock is far from overbought despite sitting just below three and a half month highs.