Buy the flag in RTN
The chart on the left is a weekly view of Raytheon. From the year 2000 low, the stock rallied nicely within a trend channel before breaking topside resistance in 2015. After topping out around $230, RTN has pulled back to retest the prior trend channel as support. Looking at a smaller timeframe on the right, we can see the sharp bounce off of the trendline and the formation of a bull flag between $173 and $188. From an Elliott Wave perspective, I'm counting the sell-off from the all-time high as a complex correction labeled W-X-Y. It's unclear whether the stock is now rallying in a new impulsive sequence or an A-B-C within a larger correction, but either way, I'm favoring a break higher from here. Initiating a long position at market with a soft target at $210.
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