Raytheon is set to release their Q1 results before Thursday’s open. Heading into the news the stock is setting up well for a fresh rally leg. Since the post Christmas rally ran out of steam in mid February RTN has been consolidating in a very narrow range just below the declining 200 day moving average. Today shares are putting some distance on the 200 day and are heading for the best close of 2019. A clear take out of the multi week February highs could spark quite a run. RTN has worked off a rather stretched overbought reading during the current consolidation. Now at neutral, the stock has plenty of room to run.
At time of publication we are long RTN in some managed accounts.