Northrop Grumman (NOC) Could Be Set To Fly Higher
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Northrop Grumman Corp. engages in the provision of advanced aircraft systems. It operates through the following segments: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems.
Take a look at the 1-year chart of Northrop (NOC) below with my added notations:
Chart of NOC provided by TradingView
NOC has been in a slight trend lower over the past several weeks, while also forming a down channel (yellow). After two failed attempts, the stock finally broke through the channel’s resistance, which should mean higher prices for the stock.
The Tale of the Tape: NOC moved out of its channel. A long trade could be entered now, or on a pullback to prior channel resistance (now support), which is currently approaching $510.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Good luck!
Christian Tharp, CMT