Raytheon retrace to point of valuefade the spending , this babys coming back to grab some more value for the big P
5UR trade ideas
Technical Analysis of RTX (Raytheon Technologies) Weekly ChartSubscribe & Follow For:
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NYSE:RTX is currently exhibiting a double megaphone pattern on the weekly chart, indicating a period of increased volatility and potential uncertainty in the market sentiment. This pattern typically suggests conflicting forces at play, with widening price swings signaling indecision among traders.
Key Pattern: Double Megaphone
A megaphone pattern, also known as a broadening formation, consists of two expanding trendlines that diverge away from each other. This pattern reflects growing volatility and uncertainty, with higher highs and lower lows being established over time. In this scenario with RTX we are showing two long term trends one inside of another.
Explanation:
Textbook Answer: This double megaphone pattern often signifies a struggle between bulls and bears, with neither side gaining a clear advantage. It also represents volatility & opportunity. It's up to us to determine price point where we can capitalize on positioning for profitability!
Real World Answer: Manipulation & Perfect Timing
As the price oscillates between the expanding trendlines, traders should exercise caution and closely monitor key support and resistance levels for potential trading opportunities. I got a feeling this one is going to be a mover!
RSI Breakout with Hidden Divergence:
In addition to the double megaphone pattern, RTX is exhibiting a notable breakout on the Relative Strength Index (RSI) with hidden bullish divergence and the highs are currently compromised with clear and visible hidden bearish divergence leading me to believe that we will revisit the 5th swing level (or in the vicinity of) one more time and see how well prices hold.
Current Situation:
At present, NYSE:RTX is approaching a critical juncture within the double megaphone pattern. Traders must evaluate whether the price will push through the upper trendline or revisit the lower trendline, known as the 5th swing in Elliott Wave Theory.
Potential Scenarios:
Managing Breakout:
If RTX manages to break above the upper trendline of the double megaphone pattern, it could signal a bullish continuation, with the potential for further upside momentum. Traders may consider initiating long positions with appropriate risk management strategies in place.
Revisit of 5th Swing (Lower Trendline)
Conversely, if RTX fails to sustain upward momentum and revisits the lower trendline, it could indicate a bearish reversal or consolidation phase. Traders should be prepared for increased volatility and monitor key support levels for potential downside targets.
Key Levels to Watch:
Resistance: Upper trendline of both of the megaphone patterns.
Support: Lower trendline (5th swing) and previous swing lows within the pattern.
Conclusion:
In conclusion, the presence of a double megaphone pattern on the RTX weekly chart suggests heightened volatility and uncertainty in the market. Traders should remain vigilant and adapt their strategies based on the price action relative to the pattern's trendlines. Granted the series of unfortunate events occurring on the global stage I could almost anticipate what is going to happen here in the long term
As always, it's essential to incorporate risk management techniques and exercise caution when navigating such volatile market conditions.
Note: Ensure to identify your price levels accordingly. This analysis is for educational purposes only and should not be construed as financial advice. Traders should conduct their own research and consult with a financial advisor before making any investment decisions.
RTX a defense contractor large cap LONGRTX has earnings on April 23rd. It has been on a good trend higher since the last earnings. The
Russian war means US defense contractors will be in a growth mode for the intermediate
future. Depleted stores of weapons systems need to be replenished. Pieces and parts are
needed for damaged systems in need of maintenance. I see RTX and others such as GD and
LMT as good long-term trades or investments. Smaller companies in the areas of robotics and
drones may be worth a look. RTX is at its all-time high but it seems much higher is in its future.
RTX falls on good earnings and defense budget issuesRTX is part of the boom defense sector thriving because of back orders created by
the Russian war against Ukraine. No matter good earnings it fell this week because
of the defense budget debate in Congress. No matter good intents to rein in the
defend spending escalation and spend in other areas such as social and infrastructure,
Russia has made the world more dangerous and national security of the US and its allies
trumps most spending except perhaps insterest on the national debt and paying the
holders of Treasuries. RTX dropped more than 10% from its tight consolidation range,
I see this dip as an excellent buying opportunity into a leader in the defense sector.
A couple scenarios for RTX swings.🔉Sound on!🔉
Thank you as always for watching my videos. I hope that you learned something very educational! Please feel free to like, share, and comment on this post. Remember only risk what you are willing to lose. Trading is very risky but it can change your life!
Exited RTX tradeI was able to exit the remainder of my 95$ call setup this morning on the pump past 95$, these contracts were up almost 60% today and I sold the remainder. I will likely avoid RTX going forward as both of my gaps have been filled. Cheers to anyone who traded RTX!
Stocks pairs trading: BA vs RTXExploring the financial indicators and market behaviors of Boeing Co. (BA) and Raytheon Technologies Corporation (RTX) offers crucial insights for investors looking to optimize their portfolio in the aerospace and defense sector. This analysis illuminates the distinct characteristics of these companies, guiding investors toward strategic decisions that resonate with their investment objectives.
Reasons to Consider Buying BA Over RTX:
Valuation and Earnings Potential: BA's forward P/E of 22.83, despite its current negative earnings, points towards a significant turnaround expectation by analysts, with an anticipated EPS next year of $7.88. This suggests optimism about BA's future profitability and recovery potential, making it an attractive bet for long-term investors.
Market Recovery and Growth Prospects: BA's performance metrics, such as an EPS improvement this year of 163.09% and an expected EPS growth next year of 114.88%, signal strong recovery potential and growth prospects. These indicators suggest BA is on a path to overcoming its current challenges and may offer substantial returns as the aviation and aerospace sectors rebound.
Strategic Market Position: Despite its recent performance downturn, BA remains a key player in the aerospace industry with a broad portfolio of commercial and defense products. Its significant market cap of $109.73B and strategic initiatives aimed at overcoming its current hurdles highlight its potential for a strong comeback and future growth.
Reasons to Consider Selling RTX:
Relative Valuation Concerns: RTX's current P/E of 41.75 and forward P/E of 15.18, combined with its EPS growth next year of 14.13%, reflect a relatively balanced outlook but may not offer the same level of undervaluation or turnaround potential as BA. This suggests that RTX, while stable, might not provide the same upside potential as BA in the near term.
Market Performance and Sentiment: Although RTX has shown a positive performance with a quarter growth of 14.17% and a half-year performance of 23.30%, its year-to-date performance is overshadowed by BA's potential for a significant rebound. RTX's steadier, but potentially slower growth trajectory might not appeal to investors seeking more aggressive growth opportunities.
Sector Dynamics and Diversification: RTX, with its diversified presence in the aerospace and defense sectors, faces different challenges and opportunities than BA. While diversification provides stability, BA's focused recovery and growth strategies in the wake of recent setbacks could present a more compelling growth narrative to investors.
Decision:
Buy 1 BA: Given BA's significant growth prospects, expected recovery, and strategic importance in the aerospace sector, it emerges as a compelling buy. Its potential for rebound and future earnings growth, despite current challenges, offers a strong investment case for those looking for long-term value and recovery plays.
Sell 2 RTX: While RTX presents a stable investment with solid fundamentals and a positive outlook, reallocating investments towards BA could provide a higher growth potential and capitalize on the recovery dynamics in the aerospace sector. RTX's performance, although commendable, may offer more modest returns compared to the potential upside in BA's stock as it recovers and regains its market position.
RTX update GapThis is my third RTX trade and the stock is finally starting to push again with a strong pivot. Stochastic RSI points upward and a bullish daily engulfing candle presents itself. I have averaged into april 19th 95$ calls over the past ten days for this setup. My price alerts are the white dashed, my most bullish target is the full gap closure on the dashed green (97$)
-I will start to exit this position greater than 21 days from expiration if price is over 92$
-I had predicted the gap will close around May 24th if the market stays bullish
RTX prepping another tradeI am looking to possibly enter another call setup on RTX soon with this consolidation within the second gap. I have successfully traded this stock with options twice in the last year. My setups tend to be longer-term swing trades. With this said the last gap took about 15 weeks to fill I believe this gap may take about as long if the spx remains strong. The defensive sector could be a protective bet in these markets where finding value is fairly challenging.
-A strong non trend breaking OBV is bullish
-A nice red weekly candle to enter for some price protection
-Multiple tests at the current fib
-Tons of support at 86$ for another averaging in zone
-Id say 95$ calls into April for a 3 month setup, with a 6 month spread 100$ makes sense here to spread out the risk but capture different deltas and other greeks
RTX could go on a nice run! Thank you as always for watching my video. As always please feel free to like, share and comment on this video!
RTX second GAP tradeIf you have followed me since the beginning this was one of my first published GAP trades, I traded GAP 1 and it turned out really well. I would much rather hold calls on this than FTNT right now because if the market takes a downturn with impending conflict in the east I think RTX holds up. I am going to start layering calls here on this golden fib rejection, Id love to buy on a test of the 50EMA or around the green fib as well. Profit take 1 is marked with the dash green. I am still deciding on dates and strikes but about to enter a call spread.
$RTX 61.8 retracement - WWIII? Great RR long with stop below $81.50. Looking to hold this for most of 2024 if it stays above 81.5 level.
RTX targetsThis can really move if it pushes through the 200day ma. I think A 100 $ target is only the first take profit area i would target the top of the trend and A retest on 100$ region or on the 200 ma
RTX flag break and continuance to fill gapsThis is one of the stronger sectors in the market right now with war fears. This call setup played out a lot better than FTNT for the short-term. Gap one is almost completely filled for a nice 17% gain on spot. I am preparing for the Gap 2 setup. 83$ needs to become a supportive area for this to playout.
RTX approaches GAP 1 on flag breakRTX broke the bull flag on daily and 4 hours, looking to close our profit take 1 and GAP one shortly. RSI can definitely go higher, this stock is hot with the insider trading that congress is pulling off with the war looming. I myself am prepping for GAP 2 setups which should be interesting since its a much larger price target.
RTX Corporation Options Ahead of EarningsAnalyzing the options chain and the chart patterns of RTX Corporation prior to the earnings report this week,
I would consider purchasing the $80usd strike price Calls with
an expiration date of 2024-1-19,
for a premium of approximately $1.37.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Break out in defence sharesThe defence sector has (ITA US) come under pressure lately due to concerns about the budget spending by the DoD given fiscal constraints in the US. Given the recent geo-political events are we seeing a breakout - Key members include RTX, BA, LMT and NOC. Thoughts?
RTX has 2 Short-Levels I would jump inThe orange Fork projects the pull-back potential, which is the Center-Line.
There are 3 short levels I see:
1. The primary is way up in the primary Sellers Zone.
Although this would be the most profitable one, it has a
caveat: Price would by then have broken the Trend Barrier (Dotted slanting Trendline).
2. The secondary Short lies the Secondary Short level, right where the GAP happend. Within this level is also a tiny bunching, where price was not able to overcome.
As for the Oscillators, the MACD and Mansfield are pointing to a Down-Trend. Only the RSI seems to be oversold and is indicating a potential pullback, which is in essence the reason to look for a short. It's supported by the Buyers Zone, where price was picked up by the Bulls.
Definitely a Chart that has it's place in my watch list.
Happy day Tr8dingN3rds §8-)
RAYTHEON Stock Chart Fibonacci Analysis 100923 Trading Idea
1) Find a FIBO slingshot
2) Check FIBO 61.80% level
3) Entry Point > 69.4/61.80%
Chart time frame : B
A) 15 min(1W-3M)
B) 1 hr(3M-6M)
C) 4 hr(6M-1year)
D) 1 day(1-3years)
Stock progress : C
A) Keep rising over 61.80% resistance
B) 61.80% resistance
C) Hit the bottom
D) Hit the top
Stocks rise as they rise from support and fall from resistance. Our goal is to find a low support point and enter. It can be referred to as buying at the pullback point. The pullback point can be found with a Fibonacci extension of 61.80%. This is a step to find entry level. 1) Find a triangle (Fibonacci Speed Fan Line) that connects the high (resistance) and low (support) points of the stock in progress, where it is continuously expressed as a Slingshot, 2) and create a Fibonacci extension level for the first rising wave from the start point of slingshot pattern.
When the current price goes over 61.80% level , that can be a good entry point, especially if the SMA 100 and 200 curves are gathered together at 61.80%, it is a very good entry point.
As a great help, tradingview provide these Fibonacci speed fan lines and extension levels with ease. So if you use the Fibonacci fan line, the extension level, and the SMA 100/200 curve well, you can find an entry point for the stock market. At least you have to enter at this low point to avoid trading failure, and if you are skilled at entering this low point, with fibonacci6180 technique, your reading skill to chart will be greatly improved.
If you want to do day trading, please set the time frame to 5 minutes or 15 minutes, and you will see many of the low point of rising stocks.
If want to prefer long term range trading, you can set the time frame to 1 hr or 1 day.
For War and Markets: Profits out of ConflictWhen I was a kid, my mom used to tell me:
“Steve, if you wanna make money in this world, you can count on people for 5 things and 5 things alone.
A) They will need food.
B) They will need money to pay for said food.
C) They will get sick.
D) They will get angry.
E) Then they will go to war.
Work in an industry that tailors to one of those 5 things and you will be fine.”
And this has proved to be the most true to true statement I have heard in a long time. The biggest industries in North America are Healthcare, Finance, Food and Military. Not to mention, in my lifetime of 30 ish years, I have seen 2 pandemics (COVID and Swin Flu), 1 pseudo-epidemic (SARS) and 4 wars (Afghanistan, Iraq, Ukraine and now Israel).
That is a lot going on in 30 years honestly.
Over this weekend, tensions rose in Israel and Israel is now at war. As such, aerospace and defence stocks are soaring (aside from BA of course), with LMT up roughly 8%, RTX 4%, Bombardier 2% and EADSY (airbus)… Well, its doing about as good as BA.
Because I am such an aerospace and defence enthusiast, I thought this would be the perfect time to talk about war, defence, exports and how these stocks behave.
Military Exports
The United States is the largest exporter of military goods with an estimated 246.8 Million in Export Value. The leading companies in the US for military exports are Lockheed Martin ( NYSE:LMT ), Raytheon Technologies ( NYSE:RTX ), General Dynamics ( NYSE:GD ) and Northrop Grumman ( NYSE:NOC ). In 2020, direct military sales revenue constituted around $124.3 billion. The major exporters of those goods were NYSE:LMT , NYSE:RTX , NYSE:GD and $NOC.
In contrast, Canada, who is considered in the top 15 countries for military exports, grossed about $2.8 billion in military sales in 2021, predominately non-artillery military weapons and vehicles. Canada’s biggest military exporter is Bombardier ( TSX:BBD.B ). Canada’s largest recipient countries include the U.K., Australia, South Korea and United Arab Emirates (UAE). Also, Canada exports a lot of military supplies to China, but sketchily doesn’t disclose this in their official reports that I referenced in researching this article, I was only able to find out about this by looking at Bombardier’s sales and fiscal reports, where it exported multiple military jets and aviation supplies to the People’s Liberation Army Air Force. Oh Canada, you SKETCHY!
The largest recipients of US military supplies include Saudi Arabia (who is the largest consumer of both US and Canadian military supplies; also sketch, why you need so many military supplies Saudi Arabia? Whatcha’ll doin over there? Got some big plans I suspect.), Australia, South Korea, Japan and, of particular relevance, Israel.
What does it matter?
Well, it matters because these stocks tend to thrive and can actually prop markets up during times of war. Here are the 4 major military suppliers during the initial breakout of the War in
Afghanistan:
And at the breakout of the War in Iraq:
And the invasion of Ukraine:
And if we want to look at the Ukraine invasion overlaid with SPX:
You can see the market took a tumble while these spiked, similar to the setup today.
You will see that, for the most part, RTX tends to outdo the rest during times of conflict and war, except in the Ukraine instance where it kind of legged. So what gives?
Well, its important to understand what each of these companies do and what they offer. Not all war and conflict is the same. During the Iraq war, the US used a lot of Ariel weapons, which is Raytheon’s speciality. The needs of Ukraine were mostly infantry and vehicle supplies at first, which is more General Dynamics area. But let’s go over, very briefly, what each of these companies provide in a general sense. This will help if you have an interest in investing:
Raytheon NYSE:RTX
Missile systems including missile guidance
Electronic warfare systems
Cyber security stems
Radar
Lockheed Martin NYSE:LMT
Fighter jets and military helicopters
Missile defense systems
Space systems
Artificial intelligence and quantum computing for military and defence applications (a very promising and key component for the future of ABM technology, or Anti-ballistic Missile technology).
General Dynamics NYSE:GD
Jets,
Nuclear Powered Submarines,
Arleigh Burke-class guided-missile destroyers,
Abrams tanks
Stryker Armoured fighting vehicles
Northrop Grumman Corp NYSE:NOC
Combat avionics
Surveillance systems
Computer systems
Air combat systems
Electronic warfare systems
Battlefield management systems
Ships and nuclear powered submarines
Aircraft carriers
Raytheon, General Dynamics and Northrop all have facilities and offices in both Canada and the US, which is why Canada ranks in the top 15 of military exports and why these 4 companies are the most major exporters of military supplies.
Concluding remarks:
So if you are in the market to profit from this Israeli situation (I know it sounds sick saying that but you know how life is), its important to look at the military needs of Israel and which company is likely going to serve it best. The reality is, all are going to do well because, while each company has its own niche, they complement each other. RTX guidance systems control LMT’s missiles which makes parts of GD’s aerial defence systems, etc. Inversely, you can just invest in AMEX:ITA (the aerospace and defence ETF) which has holdings in most of these companies.
It has a leveraged share counterpart, AMEX:DFEN , which is something that I have just bought into today 😊.
Anyway, that's it! Hopefully you found this information helpful.
As always, safe trades everyone!
Raytheon will succeed in WW3Raytheon Technologies Corporation is in a wonderful position, and will likely benefit heavily in the coming years. They are a company with strong fundamentals, plenty of employees, and constant demand from the US military. Missile defense systems will be sought after for decades to come.
Russian missiles have reportedly struck Poland today during a massive strike on Ukraine's infrastructure. US aid to Ukraine has reached over $5 billion, and does not seem to be stopping anytime soon. The attack will seemingly increase tensions between Russia and NATO, possibly leading to more sanctions or war.
Raytheon has plenty of room to decrease in the short term, but I personally think it is a great long-term play. The small dividend allows for more growth, and the profits are rising. I could surely see it hitting $100 in 2023.
This is in no way financial advice, I am not responsible for any losses taken. Invest at your own risk, this is an extremely volatile market.
Gap swing on RTX w/strong risk-rewardRTX had an irrational sell off based on a potential 3 billion dollar cost on the recent engine problem with Pratt and Whitney. Meanwhile the stock which has been a key player for decades and lost over 20 billion in market cap in two enormous gaps. The stop-loss would be a 5% drawdown, and gap 1 a 15% upside gap 2 over 30% upside. Obviously the jet fuel play would be calls which is my preferred poison. RSI is down to 18 which is also obnoxious.
